Agenda

The City Manager and the Deputy City Manager and Chief Financial Officer recommend the following to Executive Committee for recommendation to Council:

CAPITAL BUDGET

1.         City Council approve the 2012 Budget Committee Recommended (Tax Supported and Toronto Parking Authority) Capital Budget, which incorporates all decisions made during the Budget Committee meeting of December 9 and 13, 2011, with a total project cost of $1.124 billion and, a 2012 cash flow of $2.832 billion with future year commitments of $2.057 billion in 2013; $1.249 billion in 2014; $787.511 million in 2015; $358.892 million in 2016; and, $207.344 million in 2017 to 2021 as detailed in Appendix 1 of the report (January 9, 2012) from the City Manager and the Deputy City Manager and Chief Financial Officer, comprised of:

            a.         New Cash Flow Funding for:

i.          new and change in scope projects / sub-projects with a total project cost of $1.124 billion requiring: 2012 cash flow of $396.777 million and future year commitments of $337.912 million in 2013; $268.597 million in 2014; $52.640 million in 2015; $133.945 million in 2016; and, ($65.397) million in 2017 to 2021 (see Appendix 1(ii) of the report (January 9, 2012) from the City Manager and the Deputy City Manager and Chief Financial Officer);

ii.         previously approved projects / sub-projects totalling $5.830 billion (excluding two year carry forward as outlined below (iii)) requiring: 2012 cash flow of $1.897 billion and future year commitments of $1.719 billion in 2013; $980.723 million in 2014; $734.871 million in 2015; $224.947 million in 2016; and, $272.741 million in 2017 to 2021 (see Appendix 1(iii) of the report (January 9, 2012) from the City Manager and the Deputy City Manager and Chief Financial Officer);

iii.        previously approved projects / sub-projects with carry forward funding from 2010 and prior years requiring 2012 cash flow of $76.342 million, which forms part of the affordability debt target and requires Council to reaffirm their commitment; and

b.         2011 cash flow for previously approved projects / sub-projects with carry forward funding from 2011 into 2012 totalling $461.992 million (see Appendix 1(vi) of the report (January 9, 2012) from the City Manager and the Deputy City Manager and Chief Financial Officer).

2.         City Council re-confirm its surplus distribution policy that 75% of the operating budget surplus be allocated to the Capital Financing Reserve.

3.         City Council approve funding sources for the 2012 Budget Committee Recommended (Tax Supported and Toronto Parking Authority) Capital Budget (including 2011 carry forward project funding) comprised of $426.667 million from Reserves and Reserve Funds; $198.650 million in Capital from Current funding; $106.225 million in Developmental Charge funding; $550.018 million in Provincial Grants and Subsidies; $404.815 million in Federal Subsidies; $355.199 million from other sources; and, debt of $790.232 million; inclusive of 2011 carry forward debt funding of $162.264 million (see Appendix 1(iv) of the report (January 9, 2012) from the City Manager and the Deputy City Manager and Chief Financial Officer).

4.         City Council approve new incremental debt service costs of ($3.142 million) in 2012 and incremental costs of $20.665 million in 2013; $54.156 million in 2014; $44.218 million in 2015; $1.592 million in 2016; and, $66.956 million in 2017 to 2021, for inclusion in the 2012 and future operating budgets.

5.         City Council approve the 2013 to 2021 Budget Committee Recommended Capital Plan project estimates totalling $12.824 billion, comprised of $2.589 billion in 2013; $2.061 billion in 2014; $1.787 billion in 2015; $1.486 billion in 2016; $1.189 billion in 2017; $1.037 billion in 2018; $899.013 million in 2019; $879.445 million in 2020; and, $895.989 million in 2021.

6.         Consider operating impacts resulting from approval of the 2012 Budget Committee Recommended Capital Budget of $6.350 million in 2012 and incremental costs of $8.264 million in 2013; $10.986 million in 2014; $5.550 million in 2015; $3.548 million in 2016; and, $16.129 million in 2017 to 2021, for inclusion in the 2012 and future years' operating budgets.

7.         City Council approve the 2012 sinking fund levies of $129.885 million for the City and $2.294 million for the Toronto District School Board.

8.         City Council receive the reports, transmittals and communications that are on file with the City Clerk’s Office including Appendix 6 of the report (January 9, 2012) from the City Manager and the Deputy City Manager and Chief Financial Officer, as considered by the Budget Committee at its 2012 Capital Budget review meeting of January 9, 2012.

Program Recommendations:

CITIZEN CENTRED SERVICES – A

311 Toronto

9.         Council approve the 2012 Recommended Capital Budget for 311 Toronto with a total project cost of $16.348 million, and 2012 cash flow of $6.664 million and future year commitments of $12.024 million comprised of the following:

            a.         New Cash Flow Funding for:

                        i.          2 new/change in scope sub-projects with a 2012 total project cost of $16.348 million that requires cash flow of $4.324 million in 2012 and a future year commitment of $3.423 million in 2013, $2.394 million in 2014, $2.693 million in 2015, $1.874 million in 2016 and $0.328 million in each of the years 2017 through 2021;

ii.         1 previously approved sub-project with carry forward funding from 2010 and prior years requiring 2012 cash flow of $0.385 million which forms part of the affordability target that requires Council to reaffirm its commitment; and

b.         2011 approved cash flow for 2 previously approved sub-projects with carry forward funding from 2011 into 2012 totalling $1.955 million.

10.       Council approve new debt service costs of $0.094 million in 2012 and incremental debt costs of $0.573 million in 2013, $0.415 million in 2014, $0.311 million in 2015,  $0.326 million in 2016, $0.208 million in 2017, $0.042 million in 2018, $0.042 million in 2019, $0.042 million in 2020 and $0.042 million in 2021 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

11.       Council approve the 2013-2021 Recommended Capital Plan for 311 Toronto totalling $8.951 million in project estimates, comprised of $1.137 million in 2017; $1.979 million in 2018; $3.099 million in 2019; $1.368 million in 2020; and $1.368 million in 2021.

12.       Council consider operating impacts of $0.617 million in 2012; $0.153 million in 2013; $0.540 million in 2014 and, $0.540 million in 2016 emanating from the approval of the 2012 Recommended Capital Budget for inclusion in the 2012 and future year operating budgets.

Children's Services

13.       Council approve the 2012 Recommended Capital Budget for Children’s Services with a total project cost of $0.852 million and a 2012 cash flow of $5.672 million and future year commitments of $2.122 million comprised of the following:

            a.         New Cash Flow Funding for:

i.          1 new sub-project with a total project cost of $0.852 million that requires cash flow of $0.852 million in 2012;

ii.         2  previously approved sub-projects with a 2012 cash flow of $1.931 million; and future year commitments of $1.672 million in 2013; and $0.450 million in 2014;

iii.        1 previously approved sub-project with carry-forward funding from 2010 and prior years requiring 2012 cash flow of $0.375 million which forms part of the affordability target that requires Council to reaffirm its commitment; and

            b.         2011 approved cash flow for 1 previously approved sub-project with carry forward funding from 2011 into 2012 totaling $2.514 million.

14.       Council approve new debt service costs of $0.025 million in 2012; incremental debt costs of $0.152 million in 2013 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

15.       Council approve the 2013-2021 Capital Plan for Children’s Services totaling $18.320 million in project estimates, comprised of $0.601 million in 2013; $1.902 million in 2014; $2.084 million in 2015;  $2.471 million in 2016; $1.926 million in 2017; $2.147 million in 2018; $2.519 million in 2019; $2.540 million in 2020; and $2.130 million in 2021.

16.       The General Manager of Children's Services work with the Province and with the school boards to use a portion of the funding available through the Child Care Capital Reserve Fund to leverage additional funding that addresses the capital requirements associated with the implementation of Full Day Early Learning Kindergarten (FDELK).

17.       Council approve 2 additional temporary capital positions that were approved in 2011 for the delivery of new 2012 capital projects/sub-projects and that the duration for each temporary position not exceed the life and funding of its respective capital project/sub-project. 

Court Services

18.       Council approve the 2012 Recommended Capital Budget for Court Services with a total project cost of $0.822 million and a 2012 cash flow of $0.611 million and future year commitments of $0.211 million, comprised of the following:

            a.         New Cash Flow Funding for:

i.         1 new sub-project with a 2012 total project cost of $0.822 million that requires cash flow of $0.611 million in 2012 and a future year commitment of $0.211 million in 2014.

Economic Development and Culture

19.       Council approve the 2012 Recommended Capital Budget for Economic Development and Culture with a total project cost of $8.980, and 2012 cash flow of $33.163 million comprised of the following: 

            a.         New Cash Flow Funding for:

i.          17 new/change in scope sub-projects with a 2012 total project cost of $8.980 million that requires cash flow of $7.174 million in 2012 and a future year commitment of $1.806 million in 2013;

ii.         8 previously approved sub-projects with a 2011 cash flow of $11.042 million;

iii.        1 previously approved sub-project with carry forward funding from 2010  requiring 2012 cash flow of $4.381 million which forms part of the affordability target that requires Council to reaffirm its commitment; and

            b.         2011 approved cash flow for 7 previously approved sub-projects with carry forward funding from 2011 into 2012 totaling $10.566 million.

20.       Council approve new debt service costs of $0.109 million in 2012 and incremental debt costs of $0.615 million in 2013 and $0.161 million in 2014 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

21.       Council approve the 2013-2021 Recommended Capital Plan for Economic Development and Culture totalling $93.931 million in project estimates, comprised of $8.978 million in 2013; $10.875 million in 2014; $10.958 million in 2015; $10.035 million in 2016; $10.910 million in 2017; $11.135 million in 2018; $10.900 million in 2019; $10.070 million in 2020; and, $10.070 million in 2021.

22.       Council consider operating impacts of $0.160 million net in 2013, including 3 additional positions, emanating from approval of the 2012 Capital Budget for inclusion in future year operating budgets.

23.       All sub-projects with third party financing be approved conditionally, subject to the receipt of such funds during 2012 and if such financing is not forthcoming, their priority and funding be reassessed by City Council relative to other City-financed priorities and needs.

24.       The General Manager of Economic Development and Culture and the Chief Financial Officer report to the Budget Committee by June 2012, on the BIA Streetscape "Maturity Model" strategy for managing unfunded demand within debt affordability limits.

Emergency Medical Services

25.       Council approve the 2012 Recommended Capital Budget for Emergency Medical Services with a total project cost of $6.175 million and a 2012 cash flow of $2.253 million and future year commitments of $6.755 million, comprised of the following:

            a.         New Cash Flow Funding for:

i.          4 new sub-projects with a 2012 total project cost of $6.175 million that requires cash flow of $0.975 million in 2012 and future year commitments of $2.042 million in 2013; and $3.158 million in 2014;

ii.         3 previously approved sub-projects with a 2012 cash flow of $0.955 million and future year commitments of $1.555 million in 2013;

            b.         2011 approved cash flow for 4 previously approved sub-projects with carry forward funding from 2011 into 2012 totaling $0.323 million.

26.       Council approve the new debt service costs of $0.016 million in 2012 and incremental debt costs of $0.120 million in 2013, $0.257 million in 2014, and $0.317 million in 2015 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

27.       Council approve the 2013-2021 Capital Plan for Emergency Medical Services totaling $32.930 million in project estimates, comprised of $0.290 million in 2013; $2.708 million in 2014; $5.549 million in 2015; $5.849 million in 2016; $3.142 million in 2017; $1.836 million in 2018; $4.612 million in 2019; $4.472 million in 2020; and $4.472 million in 2021.

28.       Council consider the net operating impacts in the Emergency Medical Services’ operating budget of $0.006 million for 2012 and $0.106 million in 2013 emanating from the approval of the 2012 Recommended Capital Budget for inclusion in the 2012 and future year operating budgets.

29.       Council approve a gross expenditure of $0.150 million for the purchase of 80 Automatic External Defibrillators (AEDs) subject to confirmation of funding from the Heart and Stroke Foundation.

Long-Term Care Homes and Services

30.       Council approve the 2012 Recommended Capital Budget for Long-Term Care Homes & Services with a total project cost of $46.000 million, and 2012 cash flow of $35.717 million and future year commitments of $47.750 million comprised of the following: 

            a.         New Cash Flow Funding for:

i.          5 new/change in scope sub-projects with a 2012 total project cost of $46.000 million that requires cash flow of $4.000 million in 2012 and a future year commitment of $5.250 million in 2013; $20.000 million in 2014; and $16.750 million in 2015;

ii.         7 previously approved sub-projects with a 2012 cash flow of $18.250 million; and a future year commitment of $5.500 million in 2013; and $0.250 million in 2014; and

b.         2011 approved cash flow for 4 previously approved sub-projects with carry forward funding from 2011 into 2012 totaling $13.467 million.

31.       Council approve new debt service costs of $0.040 million in 2012 and incremental debt costs of $0.272 million in 2013,  $0.530 million in 2014, $1.362 million in 2015, and $0.987 million in 2016 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

32.       Council approve the 2013-2021 Recommended Capital Plan for Long-Term Care Homes totaling $68.002 million in project estimates, comprised of $3.200 million in 2013; $7.996 million in 2014; $8.313 million in 2015; $8.313 million in 2016;  $8.036 million in 2017; $8.036 million in 2018; $8.036 million in 2019; $8.036 million in 2020; and $8.036 million in 2021.

33.       Council consider operating savings of $(0.250) million net in 2012, and $(0.800) million net in 2013; and the incremental costs of $0.900 million net in 2015, emanating from the 2012 Approved Capital Budget for inclusion in the 2012 and future year operating budgets.

.

Park, Forestry and Recreation

34.       Council approve the 2012 Recommended Capital Budget for Parks, Forestry and Recreation with a total project cost of $61.533 million, and 2012 cash flow of $130.781 million and future year commitments of $50.826 million comprised of the following: 

            a.         New Cash Flow Funding for:

i.          51 new/change in scope sub-projects with a 2012 total project cost of $61.533 million that requires cash flow of $50.805 million in 2012 and a future year commitment of $10.728 million in 2013;

ii.         29 previously approved sub-projects with a 2012 cash flow of $35.978 million and a future year commitment of $33.521 million in 2013; and $6.577 million in 2014;

iii.        13 sub-projects from previously approved projects with carry forward funding from 2010 and prior years requiring 2012 cash flow of $9.681 million which forms part of the affordability target that requires Council to reaffirm its commitment; and

b.         2011 approved cash flow for 58 previously approved sub-projects with carry forward funding from 2011 and prior years into 2012 totaling $34.317 million.

35.       Council approve new debt service costs of $0.930 million in 2012 and incremental debt costs of $3.991 million in 2013, $0.357 million in 2014 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

36.       Council approve the 2013-2021 Recommended Capital Plan for Parks, Forestry and Recreation totaling $613.443 million in project estimates, comprised of $52.774 million in 2013; $55.189 million in 2014; $64.240 million in 2015; $77.586 million in 2016; $76.510 million in 2017; $82.444 million in 2018; $80.663 million in 2019; $63.956 million in 2020; and, $60.081 million in 2021.

37.       Council consider operating impacts of $2.005 million in 2012; $4.400 million in 2013; $3.235 million in 2014; and $0.493 million in 2015 emanating from the approval of the 2012 Recommended Capital Budget for inclusion in the 2012 and future year operating budgets.

38.       City Council approve 14 temporary capital positions for the delivery of new 2012 capital projects/sub-projects and that the duration for each temporary position not exceed the life and funding of its respective capital project/sub-project.

39.       The Capital Emergency Fund sub-project be approved with funding of $0.500 million for 2012 with the following conditions: 

a.         projects funded must be emergencies presenting a safety or security hazard, or impacting current operations, with a potential for significant damage resulting from the continuation of the problem identified;

b.         all projects charged to the 2012 Capital Emergency Fund sub-project must be reported to Finance staff to ensure structures are provided to ensure accountability;

c.         use of the funding must be reported in all variance reports; and

d.         any unspent balance at year-end cannot be carried forward.

40.       All sub-projects with third-party financing be approved conditionally, subject to the receipt of such funding during 2012 and, if such financing is not forthcoming, their priority and funding be reassessed by City Council relative to other City-financed priorities and needs.

41.       Parks, Forestry and Recreation in consultation with the Financial Planning Division, reassess the Major Facility Build Program capital sub-project in light of the finalized Recreation Service Plan and report on allocations and anticipated operating impacts through the 2013 Capital Budget process.

42.       Parks, Forestry and Recreation in consultation with the Financial Planning Division, reassess the Parks and Trails Build Program capital sub-project in light of the finalized City-wide Parks Plan and report on allocations and anticipated operating impacts through the 2013 Capital Budget process.

43.       Parks, Forestry and Recreation staff begin discussions to rationalize PF&R facilities to identify those that are underutilized, in disrepair or concentrated in areas of the City with facility gaps in order to maximize the use of the City's assets and enhance service system coordination.

44.       Consistent with the 2011 Approved Operating Budget recommendation, Parks, Forestry and Recreation continue to review future impacts of capital projects on operating budgets and continue to consider alternative models for service delivery to mitigate future operating impacts.

45.       City Council request the Deputy City Manager – Cluster A to prioritize planning on new splashpads to be built as a result of savings on capital costs of five wading pools.

Shelter Support and Housing Administration

46.       Council approve the 2012 Recommended Capital Budget for Shelter, Support and Housing Administration with a total project cost of $0.850 million and a 2012 cash flow of $2.438 million comprised of the following:

a.         New Cash Flow Funding for:

i.          3 new sub-projects with a total project cost of $0.850 million that requires cash flow of $0.850 million in 2011;

ii.         1 previously approved sub-project with carry forward funding from 2010 and prior years requiring 2012 cash flow of $0.250 million which forms part of the affordability target that requires Council to reaffirm its commitment; and

b.         2011 approved cash flow for 4 previously approved sub-projects with carry forward funding from 2011 into 2012 totaling $1.338 million.

47.       Council approve new debt service costs of $0.021 million in 2012; and incremental debt costs of $0.113 million in 2013 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 Operating Budget and future year operating budgets.

48.       Council approve the 2013-2021 Capital Plan for Shelter, Support and Housing Administration totaling $29.950 million in project estimates, comprised of $1.200 million in 2013; $2.700 million in 2014; $9.200 million in 2015;  $8.200 million in 2016; $4.050 million in 2017; $1.900 million in 2018; $0.900 million in 2019; $0.900 million in 2020; and $0.900 million in 2021.

49.       Council approve the net operating impacts of $0.006 million for 2012 and $0.010 million for 2013 emanating from the approval of the 2012 Recommended Capital Budget for inclusion in 2012 and future year operating budgets.

50.       The General Manager of Shelter, Support and Housing Administration report to the Community Development and Recreation Committee on details of the proposed redevelopment of Seaton House Shelter in the spring of 2012.

Toronto Employment and Social Services

51.       Council approve the 2012 Recommended Capital Budget for Toronto Employment and Social Services with a total project cost of $1.900 million and a 2012 cash flow of $1.900 million and future year commitments of $2.600 million.  The 2012 Recommended Capital Budget consists of the following:

a.         New Cash Flow Funding for:

i.          2 change in scope sub-projects with a 2012 total project cost of $1.900 million that requires cash flow of $0.600 million in 2012 and future year commitments of $0.500 million in 2013 and $0.800 million in 2014;

ii.         4 previously approved sub-projects with a 2012 cash flow of $1.300 million and a future year commitment of $1.000 million in 2013; and $0.300 million in 2014.

52.       Council approve the future year commitment of $2.600 million for IT projects, which will be fully funded by Provincial subsidies.

CITIZEN CENTRED SERVICES – B

City Planning

53.       Council approve the 2012 Recommended Capital Budget for City Planning with a total project cost of $4.064 million and a 2012 cash flow of $5.326 million and future year commitments of $1.173 million, comprised of the following:

a.         New Cash Flow Funding for:

i.          7 new/change in scope sub-projects with a 2012 total project cost of $4.064 million that requires cash flow of $2.891 million in 2012 and a future year commitment of $1.173 million in 2013; and

ii.          3 previously approved sub-projects with a 2012 cash flow of $2.435 million.

54.       Council approve new debt service costs of $0.040 million in 2012, and incremental costs of $0.250 million in 2013, and $0.416 million in 2014 to 2021 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

55.       Council approve the 2013-2021 Recommended Capital Plan for City Planning totaling $40.359 million in project estimates, comprised of $3.269 million in 2013; $4.522 million in 2014; $4.517 million in 2015; $4.547 million in 2016; $4.688 million in 2017; $4.718 million in 2018; $4.721 million in 2019; $4.751 million in 2020; and $4.626 million in 2021.

56.       The Chief Planner and Executive Director of City Planning continue to work with Financial Planning Division staff to establish capital priorities for a 10-year capital planning horizon for projects outside of the Program's 2012 Recommended Capital Budget and 2013-2021 Recommended Capital Plan prior to the 2013 Capital Budget process.

57.       The Chief Planner and Executive Director of City Planning be authorized to work on the "A" list of potential new Civic Improvement projects for 2012 and proceed to the "B" list of alternative projects in the event capital work for an "A" project cannot proceed in the current year.

58.       City Council adopt the recommendation contained in the report (October 24, 2011) entitled "2011-2012 Avenue Studies – Request for Direction Report": the City Planning Divisions' 2011 capital budget funds for Avenue Studies and $0.270 million of the proposed 2012 capital budget funds for Avenue Studies be allocated to the Eglinton-Scarborough Crosstown Planning Study, as reflected in the 2012 Recommended Capital Budget for City Planning.

Fire Service

59.       Council approve the 2012 Recommended Capital Budget for Toronto Fire Services with a total project cost of $16.209 million, and 2012 cash flow of $6.425 million and future year commitments of $13.319 million comprised of the following: 

a.         New Cash Flow Funding for:

i.          4 new sub-projects with a 2012 total project cost of $16.209 million that requires cash flow of $4.793 million in 2012, $6.317 million in 2013 and $5.099 million in 2014;

ii.         2 previously approved sub-projects with a cash flow of $1.632 million in 2012 and $1.903 million in 2013; and

b.         2011 approved cash flow for 3 previously approved sub-projects with carry forward funding from 2011 into 2012 totalling $6.705 million.

60.       Council approve new debt service costs of $0.080 million in 2012 and incremental debt costs of $0.552 million in 2013, $0.742 million in 2014 and $0.477 million in 2015 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

61.       Council approve the 2013-2021 Recommended Capital Plan for Toronto Fire Services totalling $45.044 million in project estimates, comprised of $8.320 million in 2013; $8.309 million in 2014; $4.707 million in 2015; $6.125 million in 2016; $5.800 million in 2017;  $0.300 million in 2018; $0.300 million in 2019; $10.301 million in 2020; and, $0.882 million in 2021.

62.       Council consider operating impacts of $0.068 million in 2012; $0.105 million in 2013; ($0.033) million in 2014, $0.184 million in 2015 including 1 position, ($0.050) million in 2016, $0.085 million in 2017 and ($0.050) million in 2018 emanating from the approval of the 2012 Recommended Capital Budget for inclusion in the 2012 and future year operating budgets.

63.       City Council approve a lease for Toronto Fire Services' use of the Fire Hall at 90 Quebec Street for a 20-year term based on the terms and conditions outlined in the report entitled "City of Toronto Lease – 90 Quebec Street Fire Hall at Exhibition Place" and any other terms that may be required by the Chief Executive Officer of Exhibition Place and the City Solicitor.

64.       Council approve the 2012 Recommended Capital Budget for the Radio Communication System Replacement project with a 2012 cash flow of $34.562 million and future year commitments of $34.558 million comprised of the following: 

a.         New Cash Flow Funding for:

i.          6 previously approved sub-projects that require cash flow of $6.067 million in 2012 with future year commitments of $24.192 million in 2013 and $10.366 million in 2014;

ii.         5 sub-projects from previously approved projects with carry forward funding from 2010 and prior requiring 2012 cash flow of $27.884 million which forms part of the affordability targets that requires Council to reaffirm its commitment; and

b.         2011 approved cash flow for 2 previously approved sub-projects with carry forward funding from 2011 into 2012 totalling $0.611 million.

65.       The Fire Chief, in consultation with the Chief Financial Officer, determine the operating impacts arising from the completion of the Radio Communication Replacement project in time for the 2013 Budget process.

Transportation Services

66.       Council approve the 2012 Recommended Capital Budget for Transportation Services with a total project cost of $159.902 million, and 2012 cash flow of $198.865 million and future year commitments of $23.877 million comprised of the following:

            a.         New Cash Flow Funding for:

i.          36 new/change in scope sub-projects with a 2012 total project cost of $159.902 million that requires cash flow of $139.125 million in 2012 and a future year commitment of $22.777 million in 2013; and

ii.         19 previously approved sub-projects with a 2012 cash flow of $59.740 million and a future year commitment of $1.100 million in 2013.

67.       Council approve new debt service costs of $2.162 million in 2012 and incremental debt costs of $9.975 million in 2013 and $1.760 million in 2014 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

68.       Council approve the 2012-2021 Recommended Capital Plan for Transportation Services totalling $1.937 billion in project estimates, comprised of $189.288 million in 2013; $212.439 million in 2014; $219.698 million in 2015; $224.962 million in 2016; $223.166 million in 2017; $219.914 million in 2018; $216.585 million in 2019; $215.654 million in 2020; and, $215.654 million in 2021.

69.       The General Manager, Transportation Services report on future year operating impacts of the 2013-2022 Capital Plan in time for the 2013 Budget Process.

70.       The paid duty budget for Toronto Police Services in the Capital Budget be no greater than $0.200 million.

Waterfront Revitalization Initiative

71.       Council approve the 2012 Recommended Capital Budget for the Waterfront Revitalization with a 2012 cash flow of $58.491 million and future year commitments of $225.962 million comprised of the following:

a.         New Cash Flow Funding for:

i.          2012 previously approved and 10 change in scope sub-projects with a cash flow of $9.935 million and a future year commitment of $60.446 million in 2013; $86.144 million in 2014; $44.877 million in 2015; $25.222 million in 2016; and, $9.274 million in 2017; and

b.         2011 approved cash flow for 12 previously approved sub-projects with carry forward funding from 2011 totalling $48.556 million.

72.       Council approve new incremental debt service costs of $5.136 million in 2014; $2.048 million in 2015; $2.486 million in 2016; $6.145 million in 2017; and $0.169 million in 2018 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

73.       Council request that the Waterfront Project Director formally communicate the 2012 Recommended Capital Budget approval to the Federal and Provincial governments.

INTERNAL SERVICES

Facilities Management and Real Estate

74.       Council approve the 2012 Recommended Capital Budget for Facilities Management and Real Estate with a total project cost of $23.207 million, and 2012 cash flow of $65.918 million and future year commitments of $92.655 million comprised of the following:

a.         New Cash Flow Funding for:

i.         35 new/change in scope sub-projects with a 2012 total project cost of $23.207 million that requires cash flow of $21.217 million in 2012 and a future year commitment of $1.590 million in 2013; and $0.400 million in 2014; and

ii.        79 previously approved sub-projects with a 2012 cash flow of $44.701 million and a future year commitment of $16.357 million in 2013; $31.618 million in 2014; $34.631 million in 2015 and $8.059 million in 2016.

75.       Council approve new debt service costs of $0.424 million in 2012 and incremental debt costs of $2.307 million in 2013; $0.179 million in 2014 and $0.043 million in 2015 for inclusion in the 2012 and future year operating budgets.

76.       Council approve the 2012-2020 Recommended Capital Plan for Facilities Management and Real Estate totalling $375.259 million in project estimates, comprised of $21.420 million in 2013; $34.272 million in 2014; $39.031 million in 2015; $45.488 million in 2016; $54.272 million in 2017; $63.092 million in 2018; $39.228 million in 2019; $39.228 million in 2020 and $39.228 million in 2021.

77.       Council consider operating impacts of $0.042 million in 2013 and $0.0.97 million in 2014 emanating from the approval of the 2012 Recommended Capital Budget for inclusion in future year operating budgets.

Financial Services

78.       Council approve the 2012 Recommended Capital Budget for Financial Services with a total project cost of $0.958 million, and 2012 cash flow of $25.440 million and future year commitments of $50.660 million comprised of the following:

a.         New Cash Flow Funding for:

i.          3 new/change in scope sub-projects with a 2012 total project cost of $0.958 million that requires cash flow of $0.758 million in 2012 and a future year commitment of $0.200 million in 2013;

ii.         17 previously approved sub-projects with a 2012 cash flow of $12.448 million and a future year commitment of $34.681 million in 2013; $14.961 million in 2014; and $0.818 million in 2015;

iii.        13 sub-projects from previously approved projects with carry forward funding   from 2010 and prior years requiring 2012 cash flow of $8.932 million which forms part of the affordability targets that requires Council to reaffirm its commitment; and,

b.         2011 approved cash flow for 7 previously approved sub-projects with carry forward funding from 2011 into 2012 totalling $3.302 million.

79.       Council approve new debt service costs of $0.106 million in 2012 and incremental debt costs of $0.818 million in 2013; $1.628 million in 2014; $1.621 million in 2015 and $0.088 million in 2016 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

80.       Council approve the 2013-2021 Recommended Capital Plan for Financial Services totalling $25.375 million in project estimates, comprised of $0.950 million in 2014; $1.138 million in 2015; $3.142 million in 2016; $1.680 million in 2017; $4.190 million in 2018; $5.045 million in 2019; $6.380 million in 2020; and, $2.850 million in 2021.

81.       Council consider operating impacts of $0.510 million in 2013; $0.875 million in 2014; and $0.020 million in 2015 emanating from the approval of the 2012 Recommended Capital Budget for inclusion in the 2012 and future year operating budgets.

Fleet Services

82.       Council approve the 2012 Recommended Capital Budget for Fleet Services with a total project cost of $22.482 million, and 2012 cash flow of $34.965 million and future year commitments of $9.979 million comprised of the following: 

a.         New Cash Flow Funding for:

i.          22 new and change-in-scope sub-projects with a 2012 total project cost of $22.482 million that requires cash flow of $12.503 million in 2012 and a future year commitment of $9.979 million in 2013;

ii.         6 previously approved sub-projects with a 2012 cash flow of $19.332 million; and

iii.        34 sub-projects from previously approved projects with carry forward funding from  2010 and prior years requiring 2012 cash flow of $3.130 million which forms part of the affordability targets that requires Council to reaffirm its commitment.

83.       Council approve the 2013-2021 Recommended Capital Plan for Fleet Services  totaling $397.651 million in project estimates, comprised of  $46.102 million in 2013; $40.234  million in 2014; $57.829 million in 2015; $38.644 million in 2016; $49.503  million in 2017; $44.119  million in 2018; $40.417  million in 2019;  $39.143 million in 2020; and, $41.660 million in 2021.

84.       The 2012 Recommended Capital Budget for Feet Services be adjusted to agree with Programs’ 2012 budgeted contributions to the Vehicles Reserves to reflect any changes to the recommended contributions that may occur during the 2012 Operating Budget review, and the funding availability of the Programs’ vehicle reserve account.

Information and Technology

85.       Council approve the 2012 Recommended Capital Budget for Information and Technology with a total project cost of $26.972 million, and 2012 cash flow of $46.790 million and future year commitments of $128.615 million comprised of the following:

a.         New Cash Flow Funding for:

i.          26 new sub-projects with a 2012 total project cost of $26.972 million that requires cash flow of $22.131 million in 2012 and a future year commitment of $1.980 million in 2013, $1.908 million in 2014, $0.953 million in 2015; and

ii.         35 previously approved/change in scope sub-projects with a 2012 cash flow of $24.659 million and a future year commitment of $15.131 million in 2013, $5.386 million in 2014, $3.018 million in 2015, $94.225 million in 2016, and $10.855 million in 2017.

86.       Council approve new debt service costs of $0.288 million in 2012 and incremental debt costs of $2.013 million in 2013 and $2.967 million in 2014, $2.927 million in 2015, $3.210 million in 2016, $4.973 million in 2017, $1.724 million in 2018, $1.654 million in 2019, $1.654 million in 2020, and $1.654 million in 2021,  resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

87.       Council approve the 2013-2021 Recommended Capital Plan for Information and Technology totalling $260.968 million in project estimates, comprised of $32.729 million in 2013; $37.764 million in 2014; $36.087 million in 2015; $36.104 million in 2016; $24.914 million in 2017; $21.684 million in 2018; $26.091 million in 2019; $25.392 million in 2020; and, $20.203 million in 2021.

88.       Council consider operating impacts of $0.618 million net in 2012; $2.402 million net in 2013; $2.563 million net in 2014; $1.226 million net in 2015; $2.187 million net in 2016; $4.102 million net in 2017; $0.156 million net in 2018; $0.010 million net in 2019; $0.010 million in 2020; and $0.010 million in 2021 emanating from the approval of the 2012 Recommended Capital Budget and 2013-2021 Capital Plan for inclusion in the 2012 Operating Budget and future year operating budgets.

89.       Council approve 12 temporary capital positions for the delivery of 2012 capital projects/sub-projects and that the duration for each temporary position not exceed the life and funding of its respective capital project/sub-project.

OTHER CITY PROGRAMS

Accountability Offices

90.       Council approve the 2012-2021 Recommended Capital Plan for the Accountability Offices  totaling $3.200 million in project estimates, comprised of $0.500 million in 2016; $0.600 million in 2018; $0.700 million in 2019; and $0.700 million in 2020 and $0.700 million in 2021.

City Clerk's Office

91.       Council approve the 2012 Recommended Capital Budget for the City Clerk's Office with a total project cost of $11.803 million and a 2012 cash flow of $3.442 million and future year commitments of $8.361 million comprised of the following:

a.         New Cash Flow Funding for:

i.          8 new/change in scope sub-projects with a 2012 total project cost of $0.412 million that requires a reduction in cash flow of $(0.082) million in 2012 and a reduction in future year commitments of $(0.074) million in 2013, and $(0.206) million in 2014, and an increase in future year commitment of $0.700 million in 2015 and $0.074 million in 2016; and

ii.         9 previously approved sub-projects with a 2012 cash flow of $3.524 million, and a future year commitment of $4.167 million in 2013, $3.600 million in 2014, and $0.050 million in 2015 and 2016.

92.       Council approve a decrease in debt service costs of $0.002 million in 2012, and incremental costs of $0.022 million in 2013, $0.205 million in 2014, $0.269 million in 2015, $0.625 million in 2016, and $1.807 million in 2017, $0.247 million in 2018, $0.290 million in 2019, and $0.318 million in each of the years 2020 and 2021 resulting from the approval of the 2012 Recommended Capital Budget and 2013-2021 Capital Plan, for inclusion in the 2012 and future year operating budgets.

93.       Council approve the 2013-2021 Recommended Capital Plan for the City Clerk's Office totaling $37.837 million in project estimates, comprised of $0.445 million in 2014; $2.540 million in 2015; $18.357 million in 2016; $3.582 million in 2017; $3.240 million in 2018; $3.220 million in 2019; $3.148 million in 2020; and $3.305 million in 2021.

94.       Council consider the operating impacts of $0.467 million in 2012, $0.250 million in 2013, $0.089 million in 2014, $0.020 million in 2015, $0.004 million in 2016,  $0.105 million in 2017 and $0.084 million in 2020 that emanate from the approval of the 2012-2021 Recommended Capital Plan for inclusion in the 2012 and future year operating budgets.

95.       Council approve 0.75 of a new temporary capital position for the delivery of new 2012 capital projects/sub-projects and that the duration for each temporary position not exceed the life and funding of its respective capital project/sub-project.

Pan Am Games

96.       Council approve the 2012 Recommended Capital Budget for Pan American Games with a total project cost of ($2.426 million), and 2012 cash flow of $53.415 million and future year commitments of $73.219 million comprised of the following: 

a.         New Cash Flow Funding for:

i.          8 new/change in scope sub-projects with a 2012 total project cost of ($2.426 million) that requires cash flow of ($1.119 million) in 2012 and a future year commitment of $20.484 million in 2013, ($22.018 million) in 2014 and $0.227 million in 2015; and

ii.         10 previously approved sub-projects with a 2012 cash flow of $12.350 million and a future year commitment of $1.058 million in 2013; $73.321 million in 2014 and $0.147 million in 2015.

b.         2011 approved cash flow for 7 previously approved sub-projects with carry forward funding from 2011 and prior years into 2012 totaling $42.184 million.

97.       Council approve new debt service savings of ($0.022 million) in 2012 and incremental debt costs of $0.419 million in 2013; $1.655 million in 2014; ($2.077 million) in 2015; and $0.024 million in 2016 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

Sustainable Energy Plan

98.       Council approve the 2012 Recommended Capital Budget for the Sustainable Energy Plan with a total project cost of $0.409 million, and 2012 cash flow of $0.409 million with no future year commitments, comprised of the following: 

a.         New cash flow funding for  4 new/change in scope sub-projects with a 2012 total project cost of $0.409 million that requires cash flow of $0.409 million in 2012 and no future year commitments; and

b.         13 previously approved sub-projects with a 2012 cash flow of $15.296 million and no future year commitments.

99.       Council approve the 2013-2021 Recommended Capital Plan for the Sustainable Energy Plan totalling $41.502 million in project estimates, comprised of $3.221 million in 2013; $5.279 million in 2014; $6.101 million in 2015; $6.135 million in 2016; $6.280 million in 2017; $4.818 million in 2018; $4.829 million in 2019; and $4.839 million in 2020.

100.     The City Manager and Deputy City Manager and Chief Financial Officer report back to Council through the appropriate Standing Committee in the first quarter of 2012 on the merits of Sustainable Energy loans to non-City agencies and the private sector, given the City's financial pressures and that no new loans to these sectors be approved from the Sustainable Energy Funds until this report is considered by Committee and Council.

Union Station

101.     Council approve the 2012 Recommended Capital Budget for Union Station with a total project cost of $25.000 million, and 2012 cash flow of $100.160 million and future year commitments of $311.162 million comprised of the following: 

a.         New Cash Flow Funding for 4 new/change in scope sub-projects with a 2012 total project cost of $25.000 million that requires cash flow of $10.000 million in 2012 and a future year commitment of $5.000 million in 2013, $5.000 million in 2014, and $5.000 million in 2015; and

b.         15 previously approved sub-projects with a 2012 cash flow of $90.160 million and a future year commitment of $141.787 million in 2013; $98.840 million in 2014; $46.672 million in 2015 and $8.863 million in 2016.

AGENCIES

Exhibition Place

102.     Council approve the 2012 Recommended Capital Budget for Exhibition Place with a total project cost of $4.060 million, and 2012 cash flow of $4.060 million comprised of the following:

a.         New cash flow funding for 8 new/change in scope sub-projects with a 2012 total project cost of $4.060 million that requires cash flow of $4.060 million in 2012.

103.     Council approve new debt service costs of $0.069 million in 2012 and incremental debt costs of $0.368 million in 2013 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

104.     Council approve the 2013-2021 Recommended Capital Plan for Exhibition Place totalling $39.113 million in project estimates, comprised of $3.725 million in 2013; $4.105 million in 2014; $4.375 million in 2015; $4.070 million in 2016; $4.865 million in 2017; $4.385 million in 2018; $4.440 million in 2019; $4.465 million in 2020; and, $4.683 million in 2021.

105.     All sub-projects with third party financing be approved conditionally, subject to the receipt of such funds during 2012 and if such financing is not forthcoming, their priority and funding be reassessed by City Council relative to other City-financed priorities and needs.

GO Transit

106.     Council approve the 2012 Recommended Capital Budget for GO Transit with a total project cost of $120.000 million and a 2012 cash flow of $20.000 million and future year commitments of $100.000 million.

Toronto and Region Conservation Authority

107.     Council approve the 2012 Recommended Capital Budget for Toronto and Region Conservation Authority with a total project cost and 2012 cash flow of $8.235 million.

108.     Council approve new debt service costs of $0.060 million in 2012 and incremental debt costs of $0.382 million in 2013, resulting from the approval of 2012 Recommended Capital budget, for inclusion in the 2012 and future year operating budgets.

109.     Council approve the 2013-2021 Recommended Capital Plan for Toronto and Region Conservation Authority totaling $70.301 million in project estimates, comprised of $8.330 million in 2013, $8.925 million in 2014, $9.021 million in 2015, $7.122 million in 2016, $7.225 million in 2017, $7.330 million in 2018, $7.438 million in 2019, $7.455 million in 2010, and $7.455 million in 2021.

Toronto Police Service

110.     Council approve the 2012 Capital Budget for the Toronto Police Service with a total project cost of $26.827 million, and 2012 cash flow of $57.354 million and future year commitments of $16.954 million comprised of the following:

a.         New cash flow funding for:

i.          15 new/change in scope sub-projects with a 2012 total project cost of $26.827 million that requires cash flow of $25.527 million in 2012 and a future year commitment of $1.300 million in 2013;

ii.         4 previously approved sub-projects with a 2012 cash flow of $16.219 million and a future year commitment of $10.788 million in 2013 and $4.866 million in 2014; and

b.         2011 approved cash flow for 11 previously approved sub-projects with carry forward funding from 2011 and prior years into 2012 totaling $15.608.

111.     Council approve  new debt service costs of $0.202 million in 2012 and incremental debt costs of $1.413 million in 2013, $2.239 million in 2014, $3.174 million in 2015, and $3.991 million in 2016 resulting from the approval of the 2012 Capital Budget, for inclusion in the 2012 and future year operating budgets.

112.     Council approve the 2013-2021 Capital Plan for the Toronto Police Service totaling $437.130 million in project estimates, comprised of $28.419 million in 2013, $39.037 million in 2014, $51.661 million in 2015, $60.971 million in 2016, $51.211 million in 2017, $57.733 million in 2018, $49.419 million in 2019, $44.833 million in 2020, and $53.846 million in 2021.

113.     Council consider operating impacts of $0.971 million in 2012, $0.224 million in 2013, $1.376 million in 2014, $0.022 million in 2015; and $0.194 million in 2016 emanating from the approval of the 2012 Capital Budget for inclusion in the 2012 and future year operating budgets.

114.     The Police Service Information Technology Services staff work with City Information Technology staff to determine if there are any opportunities to leverage City investments with respect to data warehousing and report back to the Deputy City Manager/Chief Financial Officer prior to the 2013 Capital Budget Submission.

Toronto Port Authority

115.     Council approve the 2012 Recommended Capital Budget for the Toronto Port Authority with a total project cost of $1.700 million and a 2012 cash flow of $1.700 million comprised of the following:

a.         New Cash Flow Funding for 1 new sub-project with a 2012 total project cost of $1.700 million that requires cash flow of $1.700 million in 2012.

116.     Council approve new debt service costs of $0.043 million in 2012 resulting from the approval of the 2012 Recommended Capital Budget for inclusion in the 2012 and operating budget.

Toronto Public Health

117.     Council approve the 2012 Recommended Capital Budget for Toronto Public Health with a total project cost reduction of $1.452 million and a 2012 cash flow of $6.393 million and future year commitments of $3.835 million, comprised of the following:

a.         New Cash Flow Funding for:

i.          one new sub-project and five change in scope sub-projects with a 2012 total project cost reduction of $1.452 million that requires a reduction in future year commitments of $0.010 million in 2013; $0.555 million in 2014; and $0.887 million in 2015.

ii.         five previously approved sub-projects with a 2012 cash flow of $4.338 million and future year commitments of $2.652 million in 2013; $1.353 million in 2014 and $1.282 million in 2015; and

b.         2011 approved cash flow for six previously approved sub-projects with carry forward funding from 2011 into 2012 totaling $2.055 million.

118.     Council approve the reduction of debt service costs of $0.002 million in 2012 and incremental debt reduction of $0.012 million in 2013, $0.077 million in 2014; and $0.095 million in 2015, resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

119.     Council approve the 2013-2021 Capital Plan for Toronto Public Health totaling $26.266 million in project estimates, comprised of $0.754 million in 2013; $2.595 million in 2014;  $3.001 million in 2015; $3.392 million in 2016; $3.388 million in 2017;  $3.363 million in 2018; $3.373 million in 2019; $3.400 million in 2020; and $3.000 million in 2021.

120.     Council approve the increase of 4.3 temporary capital positions from the 2011 capital funded temporary positions of 35.7, for a total of 40.0 positions required for the delivery of the 2012 capital projects/sub-projects and that the duration for each temporary position not exceed the life and funding of its respective capital project/sub-project.

121.     The Medical Officer of Health, in consultation with the Chief Information Officer, review, in time for the 2013 Budget process, TPH's 40 business applications that require ongoing SOGR funding beginning in 2016 for opportunities to rationalize existing systems by leveraging corporate initiatives with a view to consolidating these systems into larger, more cost effective technology solutions.

Toronto Public Library

122.     Council approve the 2012 Recommended Capital Budget for Toronto Public Library with a total project cost of $17.587 million and a 2012 cash flow of $23.890 million and future year commitments of $52.832 million comprised of the following:

a.         New Cash Flow Funding for:

i.          3 new/change in scope projects with a 2012 total project cost of $17.587 million that requires a cash flow of $0.306 million in 2012 and $2.327 million in 2013, and future year commitments of  $5.781 million in 2014; $6.914 million in 2015; and $2.259 million in 2016; and

ii.         11 previously approved projects with a 2012 cash flow of $23.584 million and a future year commitment of $23.124 million in 2013; $11.280 million in 2014; and $1.147 million in 2015.

123.     Council approve new debt service costs of $0.003 million in 2012 and incremental debt costs of $0.056 million in 2013; $0.384 million in 2014; $1.057 million in 2015; $1.787 million in 2016; $1.955 million in 2017; $2.061 million in 2018; $2.154 million in 2019 to 2021 for inclusion in the 2012 and future year operating budgets.

124.     Council approve the 2013 – 2021 Recommended Capital Plan for Toronto Public Library totalling $142.317 million in project estimates, comprised of $0.731 million in 2013; $5.378 million in 2014; $9.260 million in 2015; $16.446 million in 2016; $20.481 million in 2017; $22.804 million in 2018; $23.818 million in 2019; $21.868 million in 2020; and $21.531 million in 2021.

125.     Council consider operating impacts of $0.153 million in 2012; $(0.194) million in 2013; $0.838 million in 2014; $0.986 million in 2015; $0.040 million in 2016; $0.163 million in 2017; $0.027 million in 2018; $1.089 million in 2019; $1.162 million in 2020; and $0.107 million in 2021 emanating from the approval of the 2012 Recommended Capital Budget for inclusion in the 2012 Operating Budget and future year operating budgets.

126.     Council approve the transfer of $1.690 million gross and debt from the 2012 Information and Technology Recommended Capital Budget to the 2012 Toronto Public Library Recommended Capital Budget to invest in an automated sorting system at the Ellesmere delivery hub to achieve an estimated operational efficiency savings of $0.225 million net in 2013.

Toronto Transit Commission

127.     Council approve the 2012 Recommended Capital Budget for the TTC with a total project cost of $597.169 million, and 2012 cash flow of $1.080 billion and future year commitments of $2.210 billion comprised of the following: 

a.         New Cash Flow Funding for:

i.          38 new/change in scope sub-projects with a 2012 total project cost of $597.169 million that requires a cash flow of $71.041 million in 2012 and a future year commitment of $242.345 million in 2013; $221.806 million in 2014; $88.522 million in 2015; $46.757 million in 2016; and reduced commitments of ($73.302) million in 2019;

ii.         55 previously approved sub-projects with a 2012 cash flow of $918.882 million and a future year commitment of $701.885 million in 2013; $330.660 million in 2014; $214.451 million in 2015; $167.153 million in 2016; $105.621 million in 2017; $90.590 million in 2018; and, $73.302 million in 2019; and

b.         2011 approved cash flow for 34 previously approved sub-projects with carry forward funding from 2011 into 2012 totaling $89.854 million.

128.     Council approve the 2013-2021 Recommended Capital Plan for TTC totaling $2.984 billion in project estimates, comprised of $97.059 million in 2013; $262.424 million in 2014; $393.350 million in 2015; $488.029 million in 2016; $401.667 million in 2017; $339.937 million in 2018; $329.721 million in 2019; $316.661 million in 2020; and $355.424 million in 2021.

129.     Council approve new debt service costs of $0.671 million in 2012 and incremental debt costs of $12.248 million in 2013; $44.181 million in 2014; $41.691 million in 2015, $33.210 million in 2016, $31.701 million in 2017, $24.995 million in 2018, $17.520 million in 2019, $10.132 million in 2020 and $9.058 million in 2021 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

130.     Council consider operating impacts of $1.433 million in 2012; $0.503 million in 2013; ($0.332) million in 2014; ($0.594) million in 2015; and ($0.366) million in 2016 emanating from the approval of the 2012 Recommended Capital Budget for inclusion in the 2012 and future year operating budgets.

131.     Council approve transfers to capital funding from the following capital reserves (the amounts to include carry forward funding of 2011 unspent funds) of: $73.170 million from the Provincial Gas Tax Revenues for Public Transit Reserve Fund (XR3018); $26.644 million from the CSIF Reserve Fund (XR3020); $3.122 million from the TTIP Reserve Fund (XR3023); $7.758 million from the ORSIF Reserve Fund (XR3024); and $156.666 million in Metrolinx funding from the MoveOntario 2020 Reserve Fund (XR3025).

132.     TTC staff work with the City to pursue Federal and Provincial funding, on an urgent basis, to address its SOGR, capacity building, service improvement and growth needs, and in particular funding needed for the 189 Streetcars already in production and the new LRT Replacement Maintenance and Storage Facility, which must be completed to house the new streetcars.

133.     TTC staff provide a full 10-year projection of the operating impacts of capital projects with the 2013 Capital Budget submission.

134.     TTC staff assess their future fleet procurement requirements outside of the 2012-2021 10-year horizon and develop a strategy for the replacement of the next generation of Subway Cars, Streetcars and Buses intermittently over an extended period in order to minimize substantial concurrent capital costs. 

135.     Council approve the 2012 Recommended Capital Budget for the Spadina Subway Extension with no new project cost and 2012 cash flow of $685.463 million and future year commitments of $1.277 billion comprised of the following: 

a.         New Cash Flow Funding for:

i.          a new/change in scope sub-project with no new project cost and no cash flows in 2012 and no future year commitments;

ii.         a previously approved sub-project with a 2012 cash flow of $536.695 million and a future year commitment of $622.863 million in 2013; $330.672 million in 2014; and $323.893 million in 2015; and

b.         2011 approved cash flow for a previously approved sub-project with carry forward funding from 2011 into 2012 totaling $148.768 million.

Yonge-Dundas Square

136.     City Council approve the 2013-2021 Recommended Capital Plan for Yonge-Dundas Square totalling $0.400 million in project estimates, comprised of $0.050 million in each of years 2014 to 2021.

Toronto Zoo

137.     Council approve the 2012 Recommended Capital Budget for Toronto Zoo with a total project cost of $3.846 million, and 2012 cash flow of $5.370 million and future year commitments of $3.684 million comprised of the following: 

a.         New cash flow funding for 6 new/change in scope sub-projects with a 2012 total project cost of $3.846 million that requires cash flow of $2.846 million in 2012 and a future year commitment of $1.0 million in 2013; and

b.         1 previously approved sub-project with a 2012 cash flow of $2.524 million and a future year commitment of $2.684 million in 2013.

138.     Council approve new debt service costs of $0.057 million in 2012 and incremental debt costs of $0.325 million in 2013, and $0.107 million in 2014 resulting from the approval of the 2012 Recommended Capital Budget, for inclusion in the 2012 and future year operating budgets.

139.     Council approve the 2013-2021 Recommended Capital Plan for Toronto Zoo totalling $49.916 million in project estimates, comprised of $5.516 million in 2013; $6.0 million in 2014; $6.0 million in 2015; $4.950 million in 2016; $3.450 million in 2017; $6.0 million in 2018; $6.0 million in 2019; $6.0 million in 2020; and, $6.0 million in 2021.

140.     Council consider operating impacts of $0.420 million in 2014 emanating from the approval of the 2012 Recommended Capital Budget for inclusion in the 2014 and future year operating budgets.

141.     The Chief Executive Officer of Toronto Zoo to report back on the funding requirements for Giant Pandas as part of the 2013 Budget process.

Sony Centre

142.     Council approve 2012 Recommended Capital Budget for the Sony Centre for the Performing Arts with a total project cost of $0.500 million, and 2012 cash flow of $0.500 million comprised of the following:

            a.         New cash flow funding for 1 subproject with a 2012 total project cost of $0.500 million that requires cash flow commitments of $0.500 million in 2012.

143.     Council approve the 2013-2016 Recommended Capital Plan for the Sony Centre for the Performing Arts totaling $5.0 million in project estimates, comprised of $0.500 million in 2012, $2.0 million in 2013, $2.0 million in 2014; and $0.500 million in 2015.

144.     The Sony Centre Exterior Plaza project with third-party financing be approved conditionally, subject to the receipt of such funding during 2012 and, if such financing is not forthcoming, it be deferred until funding is available.

RATE SUPPORTED PROGRAM

Toronto Parking Authority

145.     Council approve the 2012 Recommended Capital Budget for the Toronto Parking Authority with a total project cost of $20.500 million, and 2012 cash flow of $50.217 million and future year commitments of $22.807 million comprised of the following:

a.         New Cash Flow Funding for:

i.          11 new / change in scope sub-projects with a 2012 total project cost of $20.500 million that requires cash flow of $20.500 million in 2012 with no future year commitments;

ii.         10 previously approved sub-projects with a 2012 cash flow of $11.642 million and a future year commitment of $14.407 million in 2013; $0.350 million in 2014; $0.150 million in 2015; and, $7.900 million in 2016; and

b.         2011 approved cash flow for 24 approved sub-projects with carry forward funding from 2011 into 2012 totaling $18.075 million.

146.     Council approve the 2013-2021 Recommended Capital Plan for the Toronto Parking Authority totaling $302.771 million in project estimates; comprised of $14.650 million in 2013; $40.322 million in 2014; $29.257 million in 2015; $24.507 million in 2016; $74.507 million in 2017; $31.007 million in 2018; $27.507 million in 2019; $33.507 million in 2020 and $27.507 million in 2021.

147.     Council consider net revenue (operating) impacts of $2.537 million in 2013; $0.918 million in 2014; $2.628 million in 2015; $1.425 million in 2016; $1.501 million in 2017; $1.416 million in 2018; $1.530 million in 2019; $1.320 million in 2020; and, $1.980 million in 2021 emanating from the approval of the 2012 Recommended Capital Budget for inclusion in the 2013 and future year operating budgets.

OPERATING BUDGET

148.     City Council approve the 2012 Budget Committee Recommended Tax Supported Operating Budget of $9.358 billion gross and $3.678 billion net as detailed in Appendix 1 of the report (January 6, 2012) from the City Manager and the Deputy City Manager and Chief Financial Officer, comprised of the following:

i.          a Base Budget of $9.346 billion gross and $3.680 billion net to maintain core services and service levels; and

ii.         an investment in strategic new and enhanced service priorities of $11.881 million gross and $(2.523) million net including new user fees of $0.019 million gross and $(2.650) million net revenue; or enhanced service priorities of $11.862 million gross and $0.127 million net excluding new user fees.

149.     City Council approve the rate changes of existing user fees and charges and the introduction of new user fees and charges included in the 2012 Budget Committee Recommended Operating Budgets of City Programs and Agencies, which will generate incremental revenues totalling $14.592 million.

150.     City Council approve the $83.455 million from the 2010 Tax Stabilization Reserve as a revenue source to fund the 2012 Operating Budget.

151.     City Council re-confirm its surplus distribution policy that any additional surplus in excess of 75% of the surplus be allocated to any underfunded liabilities and/or reserve funds as determined by the Deputy City Manager and Chief Financial Officer.

152.     City Council receive the reports, transmittals and communications that are on file with the City Clerk’s Office (including Appendix 4 of the report (January 6, 2012) from the City Manager and the Deputy City Manager and Chief Financial Officer) as considered by the Budget Committee at its 2011 budget review meetings.

Citizen Centred Services - A

Affordable Housing Office

153.     City Council approve the 2012 Recommended Operating Budget for the Affordable Housing Office of $2.581 million gross and $1.147 million net, comprised of the following services:

Children's Services

154.     City Council approve the 2012 Recommended Operating Budget for Children’s Services of $390.104 million gross and $73.415 million net, comprised of the following services:

Court Services

155.     City Council approve the 2012 Recommended Operating Budget for Court Services of $52.262 million gross and $(13.967 million) net, comprised of the following services:

Economic Development and Culture

156.     City Council approve the 2012 Recommended Operating Budget for Economic Development and Culture of $33.436 million gross and $23.971 million net, comprised of the following services:

157.     The General Manager of Economic Development and Culture report to Budget Committee in the second quarter, 2012 on the specific details of the services efficiencies and alternative delivery measures to be implemented to realize the recommended savings.

Emergency Medical Services

158.     City Council approve the 2012 Recommended Operating Budget for Emergency Medical Services of $169.536 million gross and $65.030 million net, comprised of the following services:

Long-Term Care Homes and Services

159.     City Council approve the 2012 Recommended Operating Budget for Long-Term Care Homes and Services of $224.765 million gross and $45.280 million net, comprised of the following services:

160.     The information contained in Confidential Attachment 1 remain confidential until the outcome of Council’s decision has been communicated to the Unions and affected staff.

Parks, Forestry and Recreation

161.     City Council approve the 2012 Recommended Operating Budget for Parks, Forestry and Recreation of $377.599 million gross and $267.472 million net, comprised of the following services:

162.     The information contained in Confidential Attachment 1 remain confidential until the outcome of Council's decision has been communicated to the Unions and affected staff.

163.     Parks, Forestry and Recreation review all future impacts of capital projects on operating budgets and consider strategies, including alternative models for service delivery, to mitigate future operating budget impacts.

164.     The Welcome Policy implement a subsidy cap of $455 for children and youth and $212 for adults to ensure that more families are served under the policy.

165.     Prior to tabling a proposed agreement between the City and the TDSB for use of TDSB pools by the City, the General Manager of Parks, Forestry and Recreation, in cooperation with the Steering Committee established to negotiate the renewal of the City/TDSB agreement, consult with the aquatics community, including the Aquatic Working Group, on the future city use of the remaining 26 pools under the current agreement.

            i.          The consultation should compare and consider the following information on City-owned and operated pools, TDSB pools utilized by the City under the current agreement, and the TDSB pools operated under Toronto Lands Corporation:

a.         Participant numbers and user classes by location;

b.         Revenues: permits and program fees by location;

c.         Hours of usage; and

d.         Pool distribution.

            ii.         The consultation inform the development of an aquatics plan for residents of the City that rationalizes future pool use.

166.     City Council request staff to look at ways to bring in new permit revenue at all of the 33 Toronto District School Board pools used by the City.

167.     As referred by City Council from its meeting of November 29, 30 and December 1, 2011, the General Manager of Parks, Forestry and Recreation implement an outdoor oven user fee of $23.05 for Commercial/Private/Non-Resident parties using an outdoor oven and an outdoor oven user fee of $11.53 for Not-for-Profit/Resident parties wanting to use an outdoor oven for community events.

168.     The implementation of a Riverdale Farm visit fee of $2.00 including taxes, for every visitor to the Riverdale Farm, and making all necessary changes to the farm infrastructure to collect the fee, be deferred until City Council has considered the report from the Riverdale Coalition, no later than July 2012.

Shelter, Support and Housing Administration

169.     City Council approve the 2012 Recommended Operating Budget for Shelter, Support and Housing Administration of $785.765 million gross and $269.317 million net, comprised of the following services:

170.     The General Manager, Shelter, Support and Housing Administration reduce the annual subsidy provided to TCHC by the amount of the municipal property tax savings to TCHC and make the necessary adjustments to the 2012 Approved Operating Budget for SSHA and Non-Program Accounts in the First Quarter Operating Budget Variance Report, once the adjustments to the tax levy for TCHC have been finalized, as per Council's direction, to ensure there is no net impact on the City's Operating Budget.

171.     The General Manager, Shelter Support and Housing Administration review strategies to mitigate the impact of the projected loss of funding in 2013 due to the depletion of the Social Housing Reserve Funds, and as well, in the course of this review, include any saving that may be identified from the findings of the Core Service Review and Efficiency Study as part of the 2013 Operating Budget process.

Social Development, Finance and Administration

172.     City Council approve the 2012 Recommended Operating Budget for Social Development, Finance and Administration of $22.201 million gross and $12.024 million net, comprised of the following services:

173.     The information contained in Confidential Attachment 1 remain confidential until the outcome of Council's decision has been communicated to the Unions and affected staff.

Toronto Employment and Social Services

174.     City Council approve the 2012 Recommended Operating Budget for Toronto Employment and Social Services of $1,225.121 million gross and $197.754 million net, comprised of the following services:

175.     The General Manager of Toronto Employment & Social Services pursue discussions on funding the Hardship Fund with the Provincial Government and report back as appropriate.

176.     The General Manager of Employment & Social Services pursue discussions with external agencies for the transfer of operational and financial responsibility of the Christmas Bureau and report back as appropriate

311 Toronto

177.     City Council approve the 2012 Recommended Operating Budget for 311 Toronto of $18.248 million gross and $9.829 million net, comprised of the following services:

CITIZEN CENTRED SERVICES “B”

City Planning

178.     City Council approve the 2012 Recommended Operating Budget for City Planning of $38.418 million gross and $12.985.4 million net, comprised of the following services:

179.     Council adopt the recommendation in the report entitled "Development Application Review Fees – 2012 Operating Budget":

i.          adopt the Fee Schedule for Planning Applications set out as Appendix 1 to that report, effective April 2, 2012, that the Municipal Code Chapter 441-4 be amended accordingly;

ii.         the City Solicitor introduce the necessary bills to give effect to the recommendations;

            as reflected in the Recommended 2012 Operating Budget for City Planning.

180.     The information contained in Confidential Attachment 1 remain confidential until the outcome of Council's decision has been communicated to the Unions and affected staff.

Fire Services

181.     City Council approve the 2012 Recommended Operating Budget for Toronto Fire Services of $369.756 million gross and $354.624 million net, comprised of the following services:

182.     The information contained in Confidential Attachment 1 remain confidential until the outcome of Council's decision has been communicated to the Unions and affected staff.

Policy, Planning, Finance & Administration and the Toronto Environment Office

183.     City Council approve the 2012 Recommended Operating Budget for Policy, Planning, Finance and Administration (PPFA) and the Toronto Environment Office (TEO) of $27.389 million gross and $12.513 million net, comprised of the following services:

184.     The information contained in Confidential Attachment 1 remain confidential until the outcome of Council's decision has been communicated to the Unions and affected staff.

Municipal Licensing and Standards

185.     City Council approve the 2012 Recommended Operating Budget for Municipal Licensing and Standards of $47.334 million gross and $19.184 million net, comprised of the following services:

Technical Services

186.     City Council approve the 2012 Recommended Operating Budget for Technical Services of $70.011 million gross and $9.491 million net, comprised of the following services:

187.     The approval to contract professional services for Transit Expansion projects in the amount of $1.170 million gross, $0 net, be subject to confirmation of funding from Metrolinx.

Toronto Building

188.     City Council approve the 2012 Recommended Operating Budget for Toronto Building of $46.720 million gross and ($10.731) million net, comprised of the following service:

Transportation Services

189.     City Council approve the 2012 Recommended Operating Budget for Transportation Services of $325.717 million gross and $204.874 million net, comprised of the following services:

190.     The information contained in Confidential Attachment 1 remain confidential until the outcome of Council's decision has been communicated to the Unions and affected staff.

191.     The approval for 10 new temporary positions for the Transit Expansion Unit be subject to confirmation of funding from Metrolinx.

INTERNAL SERVICES

Facilities Management and Real Estate

192.     City Council approve the 2012 Recommended Operating Budget for Facilities Management and Real Estate of $175.750 million gross and $52.766 million net, comprised of the following services:

193.     The information contained in Confidential Attachment 1 remain confidential until the outcome of Council's decision has been communicated to the Unions and affected staff.

Fleet Services

194.     City Council approve the 2012 Recommended Operating Budget for Fleet Services of $47.468 million gross and $0.0 million net, comprised of the following services:

Information and Technology

195.     City Council approve the 2012 Recommended Operating Budget for Information and Technology of $97.097 million gross and $63.898 million net, comprised of the following services:

196.     The information contained in Confidential Attachment 1 remain confidential until the outcome of Council's decision has been communicated to the Unions and affected staff.

Office of the Chief Financial Officer

197.     City Council approve the 2012 Recommended Operating Budget for the Office of the Chief Financial Officer of $16.765 million gross and $8.598 million net, comprised of the following services:

198.     The information contained in Confidential Attachment 1 remains confidential until the outcome of Council’s decision has been communicated to the Unions and affected staff.

Office of the Treasurer

199.     City Council approve the 2012 Recommended Operating Budget for the Office of the Treasurer of $73.343 million gross and $25.860 million net, comprised of the following services:

OTHER CITY PROGRAMS

City Manager's Office

200.     City Council approve the 2012 Recommended Operating Budget for the City Manager's Office of $43.507 million gross and $35.009 million net, comprised of the following services:

201.     The information contained in Confidential Attachment 1 remain confidential until the outcome of Council's decision has been communicated to the Unions and affected staff.

City Clerk's Office

202.     City Council approve the 2012 Recommended Operating Budget for the City Clerk's Office of $47.576 million gross and $28.781 million net, comprised of the following services:

City Council

203.     City Council approve the 2012 Recommended Operating Budget for City Council of $19.145 million gross and net, comprised of the following services:

Legal Services

204.     City Council approve the 2012 Recommended Operating Budget for Legal Services of $41.671 million gross and $18.454 million net, comprised of the following services:

205.     The approval of two new temporary Solicitor positions totalling $0.184 million for the Transit Expansion project, be subject to confirmation of funding from Metrolinx.

Mayor's Office

206.     City Council approve the 2012 Recommended Operating Budget for the Mayor's Office of $1.908 million gross and net, comprised of the following service:

Accountability Offices

207.     City Council approve the 2012 Recommended Operating Budget for the Accountability Offices of $6.965 million gross and $6.956 million net, comprised of the following Offices:

208.     P Cards, TTC Cards and Green P Parking Cards be provided for the Accountability Offices.

AGENCIES

Arena Boards of Management

209.     City Council approve the 2012 Recommended Operating Budget for the Arena Boards of Management of $6.731 million gross and $(0.008) million net, comprised of the following services:

Association of Community Centres

210.     City Council approve the 2012 Recommended Operating Budget for the Association of Community Centres (AOCCs) of $6.951 million gross and $6.687 million net, comprised of the following services:

211.     The information contained in Confidential Attachment 1 remain confidential until the outcome of Council’s decision has been communicated to the Unions and affected staff.

Exhibition Place

212.     City Council approve the 2012 Recommended Operating Budget for Exhibition Place of $64.765 million gross and ($0.005) million net, comprised of the following services:

Heritage Toronto

213.     City Council approve the 2012 Recommended Operating Budget for Heritage Toronto of $0.881 million gross and $0.312 million net, comprised of the following services:

214.     Council approve acceptance of a three year grant from the Interaction Multi-Cultural Funding program and related spending conditional upon receipt of such funding during 2012-2014 and, if such financing is not forthcoming or for an amount other than that reflected in the 2012 Operating Budget for Heritage Toronto, direct that the budget be adjusted to remove such grant funding.

Theatres

215.     City Council approve the 2012 Recommended Operating Budget for Theatres of $27.900 million gross and $2.962 million net, comprised of the following services:

Toronto and Region Conservation Authority

216.     City Council approve the 2012 Recommended Operating Budget for Toronto and Region Conservation Authority of $37.564 million gross and $7.477 million net, of which $4.270 million  is a contribution from Toronto Water and $3.206 million is tax-supported, which is comprised of the following services:

Toronto Atmospheric Fund

217.     City Council approve the 2012 Recommended Operating Budget for Toronto Atmospheric Fund of $2.279 million gross and $0 million net, comprised of the following service:

Toronto Police Service

218.     City Council approve the 2012 Recommended Operating Budget for the Toronto Police Service of $1.010 billion gross and $933.781 million net, comprised of the following services:

219.     The findings of the City's 2011 service efficiency study and the 2012 Toronto Police Service's service efficiency study be considered and if approved, be implemented in future budgets beginning in 2013.

220.     City Council approve the deferral of the increased contribution to the City's Sick Pay Gratuity Reserve, on the condition that any Service surpluses in 2011 (up to $6.500 million) be allocated to the City Sick Pay Reserve.

Toronto Police Services Board

221.     City Council approve the 2012 Recommended Operating Budget for the Toronto Police Services Board of $2.709 million gross and $2.209 million net, comprised of the following services:

Parking Tag Enforcement and Operations

222.     City Council approve the 2012 Recommended Operating Budget for Parking Enforcement and Operations of $57.818 million gross and $(22.832) million net, comprised of the following services:

Toronto Public Health

223.     City Council approve the 2012 Recommended Operating Budget for Toronto Public Health of $231.745 million gross and $41.516 million net, comprised of the following services:

224.     The information contained in Confidential Attachment 1 remain confidential until the outcome of Council's decision has been communicated to the Unions and affected staff.

Toronto Public Library

225.     City Council approve the 2012 Recommended Operating Budget for Toronto Public Library of $172.285 million gross and $157.508 million net, comprised of the following services:

Toronto Transit Commission

226.     City Council approve the 2012 Recommended Operating Budget for Toronto Transit Commission Conventional Service of $1.441 billion gross and $404.101 million net, comprised of the following service:

227.     The Chief General Manager of the Toronto Transit Commission and the City Manager continue discussions on partnering with the Province for permanent sustainable funding in order to return the TTC’s provincial funding component to the 50% level of the mid-1990s.

228.     City Council approve the 2012 Recommended Operating Budget for Wheel-Trans of $95.207 million gross and $89.882 million net, comprised of the following service:

Toronto Zoo

229.     City Council approve the 2012 Recommended Operating Budget for Toronto Zoo of $45.661 million gross and $11.108 million net, comprised of the following services:

230.     The Chief Executive Officer of the Toronto Zoo report back on the funding requirements for Giant Pandas as part of the 2013 Budget process.

Yonge-Dundas Square

231.     City Council approve the 2012 Recommended Operating Budget for Yonge-Dundas Square of $1.965 million gross and $0.464 million net, comprised of the following services:

RATE SUPPORTED PROGRAM

Toronto Parking Authority

232.     City Council approve the 2012 Recommended Operating Budget for the Toronto Parking Authority of $72.327 million gross and ($56.403) million net, comprised of the following services:

233.     The President of the Toronto Parking Authority develop a sustainable strategy to meet the 2012 net revenue target of ($3.720) million to be achieved through operational efficiencies and / or revenue growth, such as, but not limited to, changes to their current user fee rates as well as any opportunities for expanding on-street parking operations.  

CORPORATE ACCOUNTS

Community Partnership Investment Program:

234.     City Council approve the 2012 Recommended Operating Budget for the Community Partnership and Investment Program of $42.581 million gross and $42.581 million net, comprised of the following services:

235.     City Council approve the budget transfers totaling $42.581 million from the Community Partnership and Investment Program Recommended Operating Budget to the following Programs to reflect the restructuring of the Community Partnership and Investment Program in 2012:

236.     The specific allocation of the respective Community Partnership and Investment Program's services be reported to the respective Standing Committees/Board in early 2012.

Capital and Corporate Financing/Non-Program Budget

237.     City Council approve that the 2012 Recommended Operating Budget for Capital and Corporate Financing/Non-Program of $1,372.066 million gross and $165.867 million net, comprised of the following:

Summary - Capital Budget

This report (dated January 9, 2012) presents the City of Toronto's Tax Supported 2012 - 2021 Budget Committee (BC) Recommended Capital Budget and Plan and recommends approval of 2012 cash flow and future year cash flow commitments for capital projects.  Furthermore, this report requests Council’s approval of the 2013 – 2021 Capital Plan, which will form the basis for developing future capital budgets, in accordance with the City’s multi-year financial planning and budgeting practices.

The 2012 – 2021 BC Recommended Capital Budget and Plan satisfies Council’s policy agenda, is fiscally responsible and focuses on infrastructure rehabilitation.  It places priority on projects that protect the health and safety of citizens, meet legislated requirements, and those that maintain the City’s infrastructure in a state of good repair to support cost-effective service delivery.  This is particularly challenging in the fiscally constrained environment that currently confronts the City.

The 2012 – 2021 BC Recommended Capital Budget and Plan Strategy achieves the following:

-           Focuses spending on maintaining and protecting the City’s infrastructure in order to ensure that services demanded by the citizens of Toronto will be delivered in a sustainable manner in the long term;

-           Gives priority to projects that maintain existing assets in a state of good repair; while balancing the need to address service gaps on a City-wide basis;

-           Strategically applies the proceeds from the monetization of the City’s marketable assets and new Federal and Provincial funding targets to offset future capital plan debt pressures;

-           Accommodates fully the TTC's 10-Year Recommended Capital Budget and Plan by reducing or deferring various projects in the amount of $1.116 billion; and

-           Manages to keep debt service costs below the 15% guideline to mitigate future impacts on the Operating Budget, especially over the first five years of capital plan.  The 10-Year BC Recommended Capital Budget and Plan is less than the affordable debt target of $4.285 billion by $185.453 million.

The 2012 BC Recommended Capital Budget totals $2.338 billion, and estimates of capital spending for the nine years 2013 – 2021 total $12.498 billion or 84% of the total capital funding of $14.836 billion over the 10 year planning period, as described in Table 1.  Capital expenditures to maintain and renew the City’s infrastructure total $9.905 billion, representing 67% of the 2012 – 2021 BC Recommended Capital Budget and Plan's spending allocation and with the addition of Health and Safety and Legislated projects grows to 72%, as outlined in Chart 1.  This strategy is geared toward slowing down growth in the City’s state of good repair backlog.

While emphasis has been placed on maintaining and protecting the City’s existing infrastructure and physical assets, the 2012 – 2021 BC Recommended Capital Budget and Plan also invests $4.217 billion over 10 years in strategic and priority Service Improvement and Growth Related projects to accommodate increasing service demands and growth.

(See Chart 1 - 2012-2021 BC Recommended Capital Budget and

Plan by Expenditure Category)

Transit alone accounts for the largest percentage of capital expenditures in the 10-Year BC Recommended Capital Plan.  Inclusive of the Spadina Subway Extension Project, the TTC’s 2012 – 2021 Recommended Capital Plan is $7.998 billion, representing approximately 54% of the total recommended spending over the 10 year planning horizon.  Transportation Services totals an additional $2.160 billion or 15%.  Taken together, transit and transportation capital works account for $10.158 billion or 68% of the total expenditures in the 2012 – 2021 BC Recommended Capital Plan. 

(See Chart 2 - 2012-2021 BC Recommended Capital Budget and

Plan by Funding Source)

Debt and Capital from Current contributions (CFC) are the primary financing sources for the 2012 – 2021 BC Recommended Capital Plan amounting to $7.050 billion or 48% of the total funding of $14.836 billion.  Debt funding totals $4.099 billion or 28% of the financing over the City’s Capital Plan period, as noted in Chart 2.  Recommended debt financing is less than the affordable debt target of $7.236 billion by $185.453 million.  The debt affordability target is based on the City’s policy that limits the ratio of debt service cost to tax levy to no more than 15%, on an annual basis.  This has been achieved by applying $700 million in funding for the TTC's multi-year Capital Program based on use of 2012 and future operating budget surpluses; proceeds from the monetization of City assets; and, additional expected Federal and Provincial funding.

(See Table 1 - 2012-2021 Budget Committee Recommended Capital Budget and

Plan by Cluster)

Capital from Current funding totals $2.951 billion of the total recommended funding for the 2012 – 2021 BC Recommended Capital Budget and Plan of $14.836 billion.  To mitigate reliance on debt as a funding source for the City's Capital Plan, CFC will continue to be increased by 10% annually until 2018, from $198.650 million in 2012 to $353.692 million in 2021.

Financial Implications

Overview

The City of Toronto Act (CoTA), sub-section 228 (1) states that, "The City shall in each year prepare and adopt a budget including estimates of all sums required during the year" for the purpose of continuing the business of the City.  Similarly, sections 71-10 and 71-11 of the City of Toronto Municipal Code Chapter 71 'Financial Control' specify: (i) that no expenditure shall be made and no account shall be paid by or on behalf of the City, except with Council approval; and, (ii) that no commitment shall be made except where cash flow funding has been provided in the capital budget to the satisfaction of the Chief Financial Officer.  This is achieved through the approval of the BC Recommended 2012 Capital Budget.  Approval of the BC Recommended 2013 – 2021 Capital Plan provides estimates for the City's long term capital financing and planning; implementing capital activities; and, the basis for developing the annual capital budget.

Capital projects included in the 2012 – 2021 BC Recommended Capital Budget and Plan are prioritized into five categories, as shown in Table 2.  Consistent with the 2012 Capital Budget directions and guidelines, the 10-Year BC Recommended Capital Budget and Plan focuses on maintaining and rehabilitating existing infrastructure to deliver services to the citizens of Toronto.  Table 2 shows that $10.619 billion or 72% of the 2012 – 2021 BC Recommended Capital Plan of $14.836 billion is allocated to Legislated, Health and Safety, and State of Good Repair (SOGR) projects, excluding the Toronto Parking Authority. 

The emphasis on protection and preservation of existing infrastructure continues throughout the 10 year term of the Capital Plan, as graphically illustrated in Chart 3.  Although planned spending on SOGR decreases from $1.327 billion in 2012 to $758 million in 2021, it is noted that as a percent of total annual expenditures, SOGR grows incrementally from 57% in 2012 to

87% in 2021.

Despite the growing demand for investment in infrastructure maintenance to mitigate the SOGR backlog, the 10-Year BC Recommended Capital Plan allocates funding to invest in essential Service Improvement and Growth Related projects to fulfil Council’s strategic priorities, as well as to satisfy growth in service demand from an increasing population.  Investment in Service Improvement and Growth Related projects totals $918 million, or approximately 39% of all capital spending in the 2012 BC Recommended Capital Budget, as noted in Table 2.  One of the key drivers of the recommended 2012 project spending is for continued construction of the Spadina Subway Extension Project, requiring $536.695 million or 23% of the total 2012 funding.  A further investment of $3.299 billion or 26% of the recommended funding in the 2013 – 2021 Capital Plan is allocated to Service Improvement and Growth Related projects, resulting in a total investment of $4.218 billion over the 10 year term of the Capital Plan.

(See Chart 3 - 2012-2021 Recommended Capital Budget and Plan

Expenditures by Category)

The 2012 BC Recommended Capital Budget totals $2.338 billion, excluding 2011 funding carried forward into 2012, requiring future year funding commitments of $2.043 billion in 2013; $1.249 billion in 2014; $787.361 million in 2015; $350.992 million in 2016; and, $207.344 million from 2017 to 2021.

(See Table 2 - 2012-2021 Budget Committee Recommended Capital Budget and Plan

By Category and Funding Sources)

Capital Financing

The City's 10-Year BC Recommended Capital Budget and Plan is financed from various funding sources, both external and City-own, with debt being the funding of last resort.  The City's goal is to maximize funding from external sources, including other orders of government; development charges; contributions; and, donations; prior to utilizing City-own sources such as CFC and the issuance of debt.

The 2012 – 2021 BC Recommended Capital Budget and Plan will be financed from the following funding sources, as shown in Table 2:

-           Federal ($2.081 billion or 14%) and Provincial ($2.308 billion or 16%) funding account for $4.389 billion or 30% of total recommended financing;

-           Reserve and reserve funds contribute $1.842 billion or 12%;

-           Development Charges and "Other" sources, such as donations, contribution from developers and other third parties, provide $855 million of total funding;

-           Capital from Current contributions total $2.951 billion, representing 20% of total financing;

-           Debt funding totals $4.099 billion or 28% of financing over the 10 year planning horizon; and

-           $700 million from future operating budget surpluses; monetization of City assets; and, additional expected Federal and Provincial funding, all dedicated to financing the TTC's 10-Year Recommended Capital Plan.

It should be noted that debt funding would otherwise increase by the equivalent amount without the CFC contributions of $2.951 billion.  Debt financing is also managed by limiting the City's debt based on the City's affordability to fund debt servicing costs.  As a result, debt affordability targets are established for each City Program and Agency for each year of the 10 year capital plan period.

Application of Operating Surplus

Staff will be reporting out the final surplus amount for 2011 once the 2011 financial statement audit is complete and reported out in June 2012.  At that time staff will recommend that the surplus be distributed in accordance with the policy approved by Council in 2004 which states that the surplus be applied to in priority order:

a.         Capital Financing Reserve (at least 75% of the surplus); and

b.         the remainder to fund any underfunded liabilities and / or reserve funds as determined by the Deputy City Manager and Chief Financial Officer.

Should the final surplus remain at the current projection of $154 million, staff would recommend that $115.5 million be applied to the Capital Financing Reserve as part of the $700 million in additional financing required in the 2012 – 2021 Recommended Capital Budget and Plan.  The remaining $38.5 million would be split between topping up the Tax Rate Stabilization Reserve to 1% of the property tax base (as per Council’s policy established in 2000) and fund other reserves in need of replenishment which may include the Employee Benefit Liability Reserve and the Inclement Weather Reserve.  This strategy will ensure that the capital program is properly funded; reduce debt charge increases; and, protect the City against adverse economic and environmental risks.

Monetization of City Assets

The City owns interests in a considerable number of marketable assets, including real estate and government business enterprises.  The City assets currently being considered as part of the monetization strategy include the following:

1.         Continued review by Real Estate Services of City assets and monetization on an ongoing basis in partnership with Build Toronto.

2.         Joint sale of 100% of the shareholders' interest in the Enwave Energy Corporation through a competitive auction.

3.         Maximum 10% initial public offering of shares for the City's ownership in the Toronto Hydro Corporation.

4.         Identification of options by the Toronto Parking Authority which emphasize revenue generation within its mandate.

The City's multi-year Capital Plan presents a funding challenge, resulting in increasing reliance on debt financing and curtailed capital expenditures, despite increases to CFC contributions.  Debt service charges are approaching the City’s 15% debt service ratio limit and are continuing to crowd out funding for operating expenditures.  Therefore, proceeds from the monetization of City assets will be allocated to the Capital Financing Reserve for use in offsetting future debt requirements.  Funding from the monetization of City assets will be primarily applied to the TTC's significant SOGR and need to increase ridership capacity.  The 2012 – 2021 BC Recommended Capital Budget and Plan includes $700 million in 2012 and future operating budget surpluses; proceeds from the monetization of City assets; and, additional projected Federal and Provincial funding to help finance the TTC's multi-year Capital Plan.

Development Charge Funding

Development Charge funding has been utilized to the extent permissible in the 2012 –2021 Recommended Capital Budget and Plan in order to mitigate the reliance on debt funding.  Development Charge funding was directed to growth-related eligible capital projects, as required under Development Charge Legislation.  As part of the Development Charges Bylaw, 2012 represents the second year of a four year (2011 – 2014) phase-in of the Council adopted development charge rate increases.  As land development activity has been robust in 2010 and 2011, development charge funding provided for in the plan has reduced debt requirements by $169.468 million over the 10 year planning period.  These debt reductions are reflected in the following programs: Parks, Forestry and Recreation ($27.866 million); Transportation Services ($76.154 million); and, TTC ($65.448 million).

Debt Financing

As shown in Table 3, the City will retire and reissue debt totalling $2.598 billion over the 10 year planning horizon that will have no incremental impact on debt service costs.  After retiring and reissuing the $2.598 billion, the total new debt requirement has been set at $1.501 billion.

(See Table 3 - 2012-2021 Budget Committee Recommended Capital Budget and Plan Debt/CFC)

Table 3 shows that new debt will be required mainly to fund the TTC.  The CFC allocation is largely dedicated to the City's capital projects that have a service life less than 10 years.  The TTC's debt requirement is $2.475 billion, inclusive of the Spadina Subway Extension Project; transit fleet replacement; and, other capital works that have a service life of close to 30 years.

Debt Service Ratio

At its meeting of February 23 and 24, 2011 (EX3.3), Council adopted a maximum limit of 15% of debt service charges as a percentage of property taxes.  This reaffirmed the limit which was established by Council in 2006. 

As a result of the monetization strategy and reduced interest rates, the debt service charge ratio resulting from the 2012 – 2021 BC Recommended Capital Budget and Plan will not exceed the approved 15% debt service charge guideline, as shown in Chart 4. 

There are two important factors to consider in Chart 4.  First, operating budget pressures from debt charges over the next several years will be significantly moderated by applying most of the $700 million in new financing from 2012 and future operating budget surpluses; asset monetization; and expected new Federal and Provincial funding in the first five years of the Capital Plan.  Instead of debt charges increasing by $40 million to $50 million in each of the next three years, the increases will be much more moderate and for 2012, debt charges will be essentially the same as 2011.

(See Chart 4 – Debt Charges as a Percent of Property Tax Levy)

Second, the buffer between the forecasted debt charges and the 15% limit is wider.  This provides the City with room for unforeseen capital emergencies and to accommodate higher interest rates, if required.  However, the buffer should not be considered as a funding source for adding capital projects over the 10 year planning horizon.

Authority to Issue Debentures During 2012

The proceeds from debentures to be issued under the authority recommended in the report will be used to finance capital expenditures that have been incurred or committed for approved projects.  The Authority to borrow up to $900 million for City purposes in each year, 2012, 2013 and 2014, has been authorized under Bylaw # 330-2011 in order to maintain flexibility and the ability to finance:

-           Capital expenditures that were previously approved but not yet permanently financed; and

-           Debenture requirements as contained in the 2012 – 2021 BC Recommended Capital Budget and Plan, which will be considered by Council at its special meeting of January 17 to 19, 2012. 

The Deputy City Manager and Chief Financial Officer confirms that borrowing up to $900 million to fund 2012 capital expenditures (i) can be financed by the issuance of debentures with terms not to exceed 30 years; and, (ii) will not increase tax-supported debt charges as a percent of the property tax levy to exceed 15%.  The Deputy City Manager and Chief Financial Officer further confirms that funds are available from the other sources identified in the 2012 BC Recommended Capital Budget.

Approval of the 2012 Sinking Fund Levies

The City of Toronto Act (CoTA), sub-section 255 (4) states that, "If in any year an amount is or will be required by law to be raised for a sinking fund or retirement fund of the City, the City treasurer shall prepare for City Council, before the budget for the year is adopted, a statement of the amount."  This report requests Council's approval for the 2012 sinking fund levies of $129.885 million for the City and $2.294 million for the Toronto District School Board (TDSB).  Sinking fund levies for the TDSB will be fully recovered.

Incremental Operating Impacts

As part of the annual capital budget process, the incremental cost impact on the operating budget of each project over its useful life is estimated and evaluated.  The objective of this evaluation is to ensure that all operating cost increases associated with the 10–Year BC Recommended Capital Budget and Plan are both accurate and affordable, and to factor these cost increases in the annual operating budget and forecasts.  Similarly, incremental operating savings or revenues arising from the completion of capital projects are also captured. 

Capital projects impact the operating budget in the following ways:

-           Principal repayment and interest payments on debt issued to finance the capital plan;

-           Increased operating costs including on-going maintenance and programming costs for new infrastructure, rehabilitated or expanded facilities;

-           Efficiency savings from capital investments that reduce operating costs; and / or,

-           Direct contributions from the operating fund to finance pay-as-you-go capital projects thereby reducing the annual borrowing requirements.

The incremental operating impact, including debt charges arising from the approval of the 2012-2021 BC Recommended Capital Budget and Plan on the City's Operating Budgets totals $235 million over the 10 year period, as set out in Chart 5.  Incremental debt service charges of $184 million represent interest and principal repayment on new debt over the term of the 10‑Year BC Recommended Capital Plan; and, incremental net increases to City Program and Agency operating costs are estimated at $51 million.  Program costs are included in the operating budget of the appropriate City Program or Agency; while debt service costs are provided for in the capital and corporate financing account.

(See Chart 5 - 2012-2021 Budget Committee Recommended Capital Budget

and Plan - Operating Impact)

Summary - Operating Budget

This report (dated January 6, 2012) presents the 2012 Budget Committee (BC) Recommended Tax Supported Operating Budget and seeks Council’s approval for the services, service levels, and spending plans detailed therein.

The City of Toronto faced difficult decisions in preparing the 2012 Tax Supported Operating Budget to eliminate the opening operating pressure of $774 million, reduce its reliance on one-time revenues, bring spending back in line with revenue growth, and moderate capital financing pressures.

Budget directions given by the City Manager and the Deputy City Manager and Chief Financial Officer included a Core Service Review of all services delivered to examine what services the City should and should not be delivering, Service Efficiency Studies to ensure City services are delivered in the most efficient and cost-effective manner, and a User Fee Review to ensure existing fees are fair and properly consider the full cost of providing their services. These initiatives have been incorporated into the 2012 Budget process and have contributed to meeting a 10% net budget reduction target.

The 2012 Budget Committee Recommended Operating budget is $9.358 billion, resulting in a $50.799 million or 0.5% decrease in gross expenditures – the first decline in gross expenditures since amalgamation. Major advancements were made in achieving fiscal sustainability by reducing the reliance on one-time revenues and gross expenditures. Revenue sources are maximized and in accordance with expenditure growth, and capital financing costs have been moderated through the monetization of City assets and lower interest rates. Furthermore, the 2012 BC Recommended Operating Budget includes a 10 cent TTC fare increase and a 2.5% residential and 0.83% non-residential property tax increase in line with inflation.

Financial Impact

How the 2012 Operating Budget was Balanced

The City’s Operating Budget Outlook for 2012 indicated a budget pressure of $774 million, of which $360 million or 47% was due to the use of one-time / unsustainable revenues used to balance the 2011 budget (see Table 1 below). The cost of maintaining services at the 2011 approved service levels for cost of living and non-payroll inflation adjusted expenditures represents 24% of the 2012 budget pressure, totalling $188 million. In addition, $226 million or 29% of the 2012 pressure would be required primarily to fund City liabilities and the impacts of the City’s capital works program.

To address the budget pressure and help move the City towards achieving fiscal sustainability, the City reduced spending through efficiencies and service level adjustments; maximized revenue sources; maximized the impact of capital financing; and introduced moderate tax and TTC fare increases. The Service Review Program was a key initiative, which helped the City address its financial challenges, and set the foundation for services and service levels, and established the basis for multi-year service and financial planning. Further information on the Service Review Program, 2012 Budget Process and Multi-Year Financial Planning Process can be found on page 11 of this report and at: http://www.toronto.ca/legdocs/mmis/2011/ex/bgrd/backgroundfile-36612.pdf. In addition, an update is provided in a separate report from the City Manager that is also before the Budget Committee for consideration.

City costs have been reduced by $355 million. This was achieved by realizing cost savings of $267 million in base budget expenditure reductions, and the implementation of service efficiencies. Additionally, $88 million in savings will be achieved from service changes. The sizeable cost savings to be generated from base and service efficiencies have limited service impacts, enabling the City to maintain the core services that residents depend upon.

The recommended cost savings will also reduce the City's staff complement. Approval of the 2012 BC Recommended Tax Supported Operating Budget will result in the deletion of 1,765.2 positions (total savings of $127.241 million gross and $71.355 million net), partially offset by an addition of 321.4 positions (total cost of $18.066 million gross and $6.300 million net) primarily to accommodate increased TTC ridership growth; an increased Ontario Works caseload; and Parks, Forestry and Recreation's additional staff to operate new facilities for completed capital projects. As a result, the City's staff complement will be reduced by a net 1,443.8 positions or 3.1%. The net decrease is primarily attributed to Transportation Services; TTC; Parks, Forestry and Recreation; and Toronto Public Library. Further details regarding the 2012 Recommended Approved Positions can be found on page 28 of this report.

Budget pressures resulting from one-time, previous year's surplus revenues to fund the Operating Budget was reduced from $346 million in 2011 to $83 million or 76% in 2012, resulting in the City making significant advances towards fiscal sustainability.

The 2012 Operating Budget is balanced by utilizing sustainable revenues of $419 million, primarily attributed to economic growth generating $155 million, a 10 cent TTC fare increase which will provide $30 million in transit revenue, and a modest 2.5% residential and 0.83% non-residential property tax increase in line with inflation that will contribute $56.524 million.

(See Table 1 - 2012 Balancing Strategies)

2012 Operating Budget Summary

The 2012 BC Recommended Operating Budget for the Tax Supported Program is $9.358 billion, which reflects a decrease of $50.799 million or 0.5% over the 2011 Approved Operating Budget of $9.409 billion and a decline in the City's gross budget expenditures for the first time since amalgamation. This decrease is the result of the Service Review Program and budgeting strategies implemented for the 2012 Budget process. The 2012 BC Recommended Net Operating Budget (or Property Tax Supported Budget) is $3.678 billion, representing a $98.324 million or 2.7% increase over 2011 due to the significantly reduced use of one-time revenues in 2012.

Chart 1 below shows that approximately two thirds of the 2012 BC Recommended Operating (Gross) Expenditure Budget of $9.358 billion will be spent on services that the City has either no direct control over or that have significant service implications if cut.  These include Emergency Services (Police, Fire, and Emergency Medical Services) which account for 17%; Transportation and Transit which account for 20%; and the cost shared /Provincially Mandated Services (Shelter Support and Housing, Toronto Public Health, Children's Services, Long Term Care Homes & Services, and Toronto Employment & Social Services) which account for another 31%.  Altogether, these services plus the repayment of debt principal and interest represent approximately three quarters of the City’s total gross expenditures.

(See Chart 1 - Where the 2012 Operating Budget Will Be Spent)

As shown in Chart 2 below, the 2012 Budget Committee Recommended Tax Supported Operating Budget of $9.358 billion is funded by various sources. Property tax funding is the fund of last resort; therefore, the City maximizes all other sources first. Funds for the 2012 BC Recommended Operating Budget include provincial ($1.833 billion) and federal ($0.189 billion) transfers representing 22%; user fees, charges and fines of $1.65 billion or 17%; and other revenues of $1.925 billion or 20.6%. Prior year surplus is limited to $83 million or just 1% (compared to the 2011 surplus of $346 million or 49%) and property tax funding of $3.678 billion or 39%. The budget was balanced with a 2.5% residential and 0.83% non-residential property tax increase.

As a proportion of the gross operating budget, the net budget financed from property taxes has declined consistently from a high of 46% in 1999 to 39% in 2012.  The reduced reliance on property taxes is consistent with the City’s strategic direction toward a well-balanced and diversified set of sustainable and predictable revenue sources.   This reduced reliance on property taxes is attributed to cost constraints, increased user fee revenues, growth in municipal land transfer tax revenues, and further upload of the costs to the Province for court security and social services in 2012.

(See Chart 2 - Where The Money Comes From)

2012 Budget Committee Recommended Net Operating Budget

The 2012 BC Recommended Net Operating Budget (or Property Tax Supported) is $3.678 billion, which represents a 2.7% or $98.324 million increase over 2011.   This increase is funded by $41.800 million in new tax assessment growth and a 2.5% residential and 0.83 % non-residential tax increase generating, $56.500 million in additional tax revenue in 2012.  Total tax levy after assessment growth is $3.636 billion, an increase of 1.6% over 2011.

Chart 3 illustrates how the 2012 BC Recommended Net Operating Budget, or property tax funding, will be spent.  Consistent with the allocation of the gross expenditures, 73% of the 2012 BC Recommended Net Operating Budget is directed to emergency services, cost shared / provincially mandated health and social services, and transit.

(See Chart 3 - 73% of the $3.678 Billion Property Taxes go to Emergency Services,

TTC and Provincial Mandated Health and Social Services)

Where the 2012 Net Operating Budget is Spent

Chart 4 below shows how property taxes of $2,459.89 for the average house, valued at $447,090, will be spent.  Of the total average property tax of $2,459, approximately three quarters or $1,823 will be spent on Police Services; TTC; repaying the principal and interest costs for debt borrowing (debt servicing); Fire Services; Shelter, Support, and Housing; and Parks, Forestry and Recreation. The remaining $637 or 26% of the property tax bill is used to fund all other services delivered by the City.

(See Chart 4 - How Your Tax Dollar Will Work For You In 2012)

2011 Budget Surplus

The Operating Variance Report for the Nine-Month Period Ended September 30, 2011 project a 2011 year-end operating surplus of $154.044 million or 4.3% of the 2011 Approved Net Operating Budget. 

It is noted that the projected year-end operating surplus of $154.044 million includes the financial impact of the Voluntary Separation Program (VSP) on the 2011 Operating Budget.  The review and analysis of VSP applications for City Operations have just been completed and the review for Toronto Public Library is still underway.  The estimated VSP payouts are close to $20.0 million.  The final VSP payout costs will be reported in the year-end operating variance report after all approved applications are processed.

Collectively, Rate Supported Programs were over budget in YTD September by $12.146 million or 17.5% and projections to year-end indicate that they will be underspent by $15.294 million or 27.1% of the 2011 Approved Net Operating Budget.

Staff will be reporting out the final surplus amount for 2011 once the 2011 financial statement audit is complete and reported out to Audit Committee in July, at that time, staff will recommend that the surplus be distributed in accordance with the policy approved by Council in 2004 which states that the surplus be applied in priority order to:

a.         Capital Financing Reserve (at least 75% of the surplus) and,

b.         the remainder to fund any underfunded liabilities and/or reserve funds as determined by the Deputy City Manager and Chief Financial Officer.

Should the final surplus remain at $154.044 million, staff would recommend that $115.5 million be applied to the capital financing reserve as part of the $700 million in additional financing required in the 2012 to 2021 Capital Budget and Plan.  The remaining $38.544 million would be split between topping up the Tax Rate Stabilization Reserve to 1% of the property tax base (as per Council’s policy established in 2000) and to fund other reserves in need of replenishment which include the Employee Benefit Liability Reserve and the Extreme Weather Reserve.  This strategy will ensure that the capital program is properly funded, reduce debt charge increases and protect the City against adverse economic and environmental risks.

Future Year Outlook Summary

The future year Outlook presents fully balanced operating budgets for 2013 and 2014, should forecasted efficiency savings targets be met. For 2013, the forecasted outlook pressure before revenue increases will be approximately $447 million, comprised of $122 million from the use of one-time funding in 2012 and $325 million in expenditure changes. For 2014, the estimated outlook pressure before revenue increases is $328 million, which includes $31 million from non-recurring reserve funds, as these reserve funds will be depleted at the end of 2013, and $297 million in expenditure changes.

Revenue increases for 2013 and 2014, inclusive of revenues from economic growth, incremental user fees, provincial upload of social services and courts security costs, and reserve contributions, will be approximately $178 million and $159 million respectively. Should Council approve an increase in TTC fares and a 2.5% property tax increase for both years, additional anticipated revenues will be $88 million in 2013 and $89 million in 2014, bringing total revenue increases to $266 million in 2013 and $248 million in 2014. 

To offset the remaining operating pressure, efficiency savings targets will be implemented and are expected to generate savings of $180 million in 2013 and $80 million in 2014, resulting in fully balanced operating budgets for both years. Although the Operating Outlook is much more positive compared to recent years, the City must continue to address its reliance on unsustainable balancing strategies in future years to achieve fiscal sustainability and adhere to municipal budgeting best practices. Further details regarding the 2013 and 2014 Outlooks can be found on page 29 of this report (dated January 6, 2012).

The Audit Committee recommends to the Budget Committee that:

1.         The Auditor General's Office budget for 2012 be maintained at the same level as the 2011 Auditor General's Office budget.

The Deputy City Manager Cluster B recommends that:

1.         City Council adopt the Fee Schedule for Planning Applications set out in Appendix 1 to this report effective April 1, 2012 and that the Municipal Code Chapter 441-4 be amended accordingly.

2.         City Council authorize the City Solicitor to introduce the necessary bills to give effect to these recommendations.

The Community Development and Recreation Committee:

1.         Forwarded the report (May 10, 2011) from the Fire Chief and General Manager, Toronto Fire Services, to the Budget Committee for information.

2.         Requested that the Fire Chief and General Manager, Toronto Fire Services include the staffing levels required to meet NFPA standard 1710 in the 2012 Fire Services multi-year budget submission for consideration by Council.

It is recommended that:

1.         The Budget Committee approve the Toronto Police Service’s 2012 net operating budget request of $936.3 Million (M), which achieves $43.1M of the $93M (or 4.6 of the 10%) City reduction target. 

2.         The Budget Committee approve the deferral of the increased contribution to the City’s Sick Pay Gratuity Reserve, on the condition that any Service surpluses in 2011 (up to $6.5M) be allocated to the City Sick Pay Reserve.

It is recommended that:

1.         The Budget Committee approve a net 2012 operating budget request of $2,251,600 which is a decrease of 5.2% over a projected 2011 budget of $2,374.100.

The Toronto Police Service’s Parking Enforcement Unit’s (PEU) 2012 net operating budget request is $42.1M ($43.7M gross).  This request includes the 2012 impact of the labour contract settlements, and represents an increase of $1.6M (4.0%) over the adjusted 2011 net operating budget of $40.4M.

The 2011 approved budget of $39.5M will be adjusted to reflect the impact of labour contract settlements.  For comparison purposes, the 2011 budget has been adjusted for the impact of the contract settlement and the 2012 request is compared to the adjusted 2011 budget.

PEU’s 2012 operating budget request assumes the complement of Parking Enforcement Officers and civilian staff remains unchanged.  One uniform management position has been deleted as a direct result of the Voluntary Exit Incentive Program.

The Board of Health on September 13, 2011, recommended to the Budget Committee that:

1.         City Council approve the Toronto Public Health 2012 Operating Budget request of  $228,226.7 thousand gross / $41,137.4 thousand net as summarized in Table 1, “2012 Operating Budget Request”.

2.         City Council approve the list of base budget adjustments included in Table 5, “Overview of 2012 Operating Budget Request” of this report totalling an increase of $1,999.8 thousand gross and $818.5 thousand net.

3.         City Council approve 2012 Reduction Options of $8,242.6 thousand gross and $4,458.4 thousand net as outlined in Table 3, "2012 Requested Reduction Options Budget".

4.         The Toronto Public Health 2012 Operating Budget submission be adjusted to include two 100% provincially funded (0% net to the City) public health nurses to work on health issues for newcomers and for at-risk communities.

5.         The 10% savings in the 2012 Toronto Public Health Operating Budget be reinvested in public health services to protect and promote health and maximize provincial funding.

The Lobbyist Registrar recommends that:

1.         Budget Committee approve the 2012-2021 Capital Budget and Plan for the Office of the Lobbyist Registrar at $2.000 million as submitted.

The Ombudsman recommends that:

1.         Budget Committee approve the 2012-2021 Capital Budget and Plan for the Office of the Ombudsman at $1.200 million as submitted.

It is recommended that:

1.         The Budget Committee approve the 2012-2021 revised capital program with a 2012 net request of $24.7M (excluding cash flow carry forwards from 2011), and a net total of $316.8M for 2012-2021, as detailed in Attachment A, contained in Appendix A.

It is recommended that:

1.         City Council approve a 2012 Recommended Capital Budget for Toronto Public Health with a total project cost reduction of $1.452 million and a 2012 cash flow of $5.121 million and future year commitments of $3.835 million.  The 2012 Capital Budget is comprised of the following:

            a.         new cash flow funding for:

i.          one new sub-project and five change in scope sub-projects with a 2012 total project cost reduction of $1.452 million that requires a reduction in future year commitments of $0.010 million in 2013; $0.555 million in 2014; and $0.887 million in 2015.

ii.         one new and four previously approved sub-projects with a 2012 cash flow of $4.338 million and future year commitments of $2.652 million in 2013, $1.353 million in 2014 and $1.282 million in 2015.

b.         2011 approved cash flow for one previously approved sub-project with carry forward funding from 2011 into 2012 totalling $0.783 million.

2.         City Council approve the 2013-2021 Capital Plan for Toronto Public Health totalling $26.266 million in project estimates, comprised of $0.754 million in 2013, $2.595 million in 2014, $3.001 million in 2015, $3.392 million in 2016, $3.388 million in 2017, $3.363 million in 2018, $3.373 million in 2019, $3.4 million in 2021, and $3 million in 2021.

It is recommended that:

1.         Approve an amended 2012-2016 Capital Program and 10 Year Forecast as a result of Shortfall Reduction Plan Changes in the amount of $725.0 million as outlined in this report and as summarized in Appendix A, resulting in the following revised budget requirements:

a.         a 20112 Capital Budget in the amount of $1,079.8 million, noting that identified capital funding sources are more than sufficient to fund the 2012 capital budget request;

b.         the 2012-2016 Capital Program in the amount of $4.334 billion, noting that the capital expenditures needed to maintain the existing transit system in a state-of-good repair over this 5 year period exceed currently identified; and

c.         the 2012-2021 TTC Capital Forecast in the amount of $6.274 billion, noting that the capital expenditures needed to maintain the existing transit system in a state-of-good-repair over this 10 year period still exceed currently identify capital funding sources by about $806.7 million.

2.         Endorse TTC staff working with the City to pursue Provincial and Federal Government funding to address the remaining funding shortfalls.

3.         Forward this report to the City of Toronto Budget Committee as the TTC's Shortfall Reduction Plan for base capital funding needs.

4.         Forward this report to the Standing Committee on Finance of the House of Commons for consideration during the Federal Pre-Budget Consultations.

5.         Forward this report to the Federal Minister of Transportation, Infrastructure and Communities, for consideration of TTC's base capital funding needs.

6.         Forward this report to the Ontario Minister of Transportation, The Ontario Minister of Public Infrastructure Renewal, and to the Ontario Minister of Finance, for consideration of TTC's base capital funding needs.

7.         Forward this report to Metrolinx, for consideration of TTC's base capital funding needs.

Capital expenditures for the Nine Months ended September 30, 2011 totalled $1.269 billion or 33.5% of the 2011 Approved Capital Budget of $3.786 billion (see Chart 1).  This spending pattern is consistent with prior years.  As detailed by City Program and Agency in Appendix 1, projected actual expenditures to year-end is estimated at $2.684 billion or 70.9% of the total 2011 Approved Capital Budget of $3.786 billion.  It is noted that 50%, or 18 of 36 City Programs and Agencies have projected spending in excess of 70% of their respective budgets by year-end.  Tax Supported Programs project a spending rate to year-end of 69.4%; while Rate Supported Programs project spending of 76.1%.

(SEE CHART 1 IN THE REPORT UNDER THE FINANCIAL IMPACT SECTION

 "2011 CAPITAL BUDGET VS. ACTUAL EXPENDITURES FOR THE

NINE MONTHS ENDED SEPTEMBER 30, 2011")

The City Manager recommends that City Council:

1.         Receive this report for information.

This report provides an update on implementation of the Service Review Program for 2012 to 2014 including service adjustments being implemented through the 2012 and future years' budget process as a result of Council's decisions on the Core Service Review and the status of the 119 additional efficiency measures identified during the process.  Many of the additional efficiency measures have been captured in the 2012 operating budget process while others will be considered for future years' savings or included in longer term studies.  Appendix A summarizes the status of all of these activities.

The Statements of Work (SOW) and full final reports prepared by external firms for completed Service Efficiency Studies are available on the City's Service Review website at http://www.toronto.ca/torontoservicereview/efficiencystudies.htm.

These studies provide advice and recommendations to the City Manager and were conducted in consultation with divisions and agencies. They identify actions and directions which could result in more efficient and effective service delivery, organizational and operational arrangements and associated savings.

The City Manager will work closely with divisional and agency senior management to determine which of the actions are feasible and can be implemented, the timeframe and methods of implementation and the estimated cost savings.  Appendix B provides a summary of recommendations from the eight studies completed to date. 

Approximately 28 Core Service Review related actions have been submitted in the 2012 operating budget for an estimated $49.42 M Gross and $42.82 M Net of savings as part of divisional and agency budget reduction targets. These actions are identified as 2012 Budget Business Cases in Appendix A.  Any further savings achieved during 2012 to 2014 will be reported out as part of ongoing budget reporting processes.

To date, the Service Efficiency Studies conducted by external firms have identified ranges of initial high level savings estimated between $167.0 M to $249.1 M during 2012 and future years including one-time and ongoing financial benefits.  These recommendations and high level savings are outlined in Appendix B.  The achievement of these savings will be highly dependent on the viability of these actions as determined by more detailed review and due diligence, the implementation timeframes required and available, and other considerations such as changing operating demands, or new legislative requirements over time.

It should be noted that some Core Service Review related actions and efficiency recommendations arising from the Service Efficiency Studies were identified by divisional and agency staff as part of ongoing efficiency measures prior to the commencement of these reviews.  In these instances, external firms reviewed and validated efficiency plans as part of the broader study.   

Funds in the amount of $3 M were approved in the 2011 Operating Budget to engage third-party expertise to support the Core Service Review and Service Efficiency Studies as required. Approximately $2.05 M (net of HST recoveries) will be spent on the Core Service Review and 2011 Service Efficiency Studies (completed and in-progress).  $2.75 M has been included in the 2012 Recommended Operating Budget to support the 2012 Service Efficiency Study Program, inclusive of up to 12 studies in progress or planned for 2012. $40 M capital has also been allocated over the next 6 years to enable technology investments identified through the Service Review Study Program.

As a result of the Comprehensive User Fee review, changes to existing user fees and the introduction of new user fee opportunities will generate incremental revenues totalling $20.126 million (including Toronto Water and Solid Waste Management Services, but excluding TTC) which has been included in the 2012 Recommended Operating Budget, and consists of $14.061 million from City Tax Supported Programs, $0.980 million from Agencies, and 5.085 million from Rate Supported Programs (Toronto Water and Solid Waste Management Services).

Price changes to existing user fees will generate $17.008 million in total incremental revenues in 2012. This includes $3.742 million from automatic inflation adjustments for 2012, and $13.266 million from non-inflation rate changes.  The non-inflation rate changes increase in revenues is mainly to recover more of the full cost of providing user fee services and/or to adjust the price of market-based user fees based on market price comparisons and benchmarks, where applicable.

(SEE TABLE 1 IN THE REPORT UNDER FINANCIAL IMPACT SECTION

"COMPREHENSIVE USER FEE REVIEW - 2012 INCREMENTED REVENUES")

The incremental revenues listed above exclude the Toronto Transit Commission's 10 cent fare increase which is projected to generate $30.0 million in 2012.

New fee opportunities will generate estimated revenues of $3.117 million for 2012, which include $0.266 million for Solid Waste Management Services and $0.183 million for Toronto Water.